I 

113TH CONGRESS 

1ST SESSION H. R. 3084 

To amend the Internal Revenue Code of 1986 to provide a credit for the 

production of renewable chemicals. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 12, 2013 

Mr. PASCRELL (for himself, Mr. STOCKMAN, Ms. SCHWARTZ, Ms. LINDA T. 

SA ́NCHEZ of California, and Mr. NEAL) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit for the production of renewable chemicals. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; FINDINGS; SENSE OF CONGRESS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Qualifying Renewable Chemical Production Tax Credit 

6 Act of 2013’’. 

7 (b) FINDINGS.—Congress finds that a successful bio8 based products industry represents— 

9 (1) a historic opportunity to add jobs to the 

10 United States chemicals and plastics sectors, 

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1 (2) an opportunity to increase energy security 

2 in the United States and Western Hemisphere, 

3 (3) a prime opportunity to reduce the depend4 ence of the United States on foreign oil, 

5 (4) an opportunity to increase the supply of pe6 troleum products available to the fuel markets, 

7 thereby keeping costs of petroleum-based products 

8 low, 

9 (5) the prospect of driving business to down10 stream facilities by integrating bio-based products 

11 production into existing networks, and 

12 (6) a great opportunity to attract capital to 

13 both new and existing facilities. 

14 (c) SENSE OF CONGRESS.—It is the sense of Con15 gress that the United States should encourage domestic 

16 production of renewable chemicals. 

17 SEC. 2. CREDIT FOR THE PRODUCTION OF RENEWABLE 

18 CHEMICALS. 

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following new 

22 section: 

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1 ‘‘SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE 

2 CHEMICALS. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

4 renewable chemicals production credit for any taxable year 

5 is an amount (determined separately for each renewable 

6 chemical produced by the taxpayer) equal to $0.15 per 

7 pound of eligible content of renewable chemical produced 

8 by the taxpayer during the taxable year. 

9 ‘‘(b) LIMITATION.—The credit determined under sub10 section (a) with respect to any renewable chemical pro11 duced by any taxpayer during any taxable year shall not 

12 exceed the credit amount allocated by the Secretary to the 

13 taxpayer with respect to such chemical for such taxable 

14 year under subsection (e). 

15 ‘‘(c) ELIGIBLE CONTENT.—For purposes of this sec16 tion— 

17 ‘‘(1) IN GENERAL.—The term ‘eligible content’ 

18 means, with respect to any renewable chemical, the 

19 biobased content percentage of the total mass of or20 ganic carbon in such chemical. 

21 ‘‘(2) BIOBASED CONTENT PERCENTAGE.—The 

22 term ‘biobased content percentage’ means, with re23 spect to any renewable chemical, the biobased con24 tent of such chemical (expressed as a percentage) 

25 determined by testing representative samples using 

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1 the American Society for Testing and Materials 

2 (ASTM) D6866. 

3 ‘‘(d) RENEWABLE CHEMICAL.—For purposes of this 

4 section— 

5 ‘‘(1) IN GENERAL.—The term ‘renewable chem6 ical’ means any chemical which— 

7 ‘‘(A) is produced by the taxpayer in the 

8 United States (or in a territory or possession of 

9 the United States) from renewable biomass, 

10 ‘‘(B) is sold, or used, by the taxpayer— 

11 ‘‘(i) for the production of chemical 

12 products, polymers, plastics, or formulated 

13 products, or 

14 ‘‘(ii) as chemicals, polymers, plastics, 

15 or formulated products, and 

16 ‘‘(C) is not sold or used for the production 

17 of any food, feed, or fuel. 

18 ‘‘(2) EXCEPTIONS.—Such term shall not in19 clude any chemical if— 

20 ‘‘(A) the biobased content percentage of 

21 such chemical is less than 25 percent, 

22 ‘‘(B) 10,000,000 pounds or more of such 

23 chemical was produced during calendar year 

24 2000 from renewable biomass, 

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1 ‘‘(C) such chemical is not either the prod2 uct of, or reliant upon, biological conversion, 

3 thermal conversion, or a combination of biologi4 cal and thermal conversion, of renewable bio5 mass, or 

6 ‘‘(D) such chemical is composed of renew7 able chemicals that are eligible for a credit 

8 under this section. 

9 ‘‘(3) RENEWABLE BIOMASS.—The term ‘renew10 able biomass’ has the meaning given such term in 

11 section 9001(12) of the Farm Security and Rural 

12 Investment Act of 2002 (7 U.S.C. 8101(12)). 

13 ‘‘(e) ALLOCATION OF CREDIT AMOUNTS.— 

14 ‘‘(1) IN GENERAL.—Not later than 180 days 

15 after enactment of this section, the Secretary, in 

16 consultation with the Secretary of Agriculture, shall 

17 establish a program to allocate credit amounts under 

18 this section to applicants for taxable years. 

19 ‘‘(2) LIMITATIONS.— 

20 ‘‘(A) AGGREGATE LIMITATION.—The total 

21 amount of credits that may be allocated under 

22 such program shall not exceed $500,000,000. 

23 ‘‘(B) TAXPAYER LIMITATION.—The 

24 amount of credits that may be allocated to any 

25 taxpayer for any taxable year under such promstockstill on DSK4VPTVN1PROD with BILLS

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1 gram shall not exceed $25,000,000. For pur2 poses of the preceding sentence, all persons 

3 treated as a single employer under subsection 

4 (a) or (b) of section 52, or subsection (m) or 

5 (o) of section 414, shall be treated as one per6 son. 

7 ‘‘(3) SELECTION CRITERIA.—In determining 

8 which taxpayers to make allocations of credit 

9 amount under this section, the Secretary shall take 

10 into consideration— 

11 ‘‘(A) the number of jobs created and main12 tained (directly and indirectly) in the United 

13 States (including territories and possessions of 

14 the United States) as result of such allocation 

15 during the credit period and thereafter, 

16 ‘‘(B) the degree to which the production of 

17 the renewable chemical demonstrates reduced 

18 dependence on imported feedstocks, petroleum, 

19 non-renewable resources, or other fossil fuels, 

20 ‘‘(C) the technological innovation involved 

21 in the production method of the renewable 

22 chemical, 

23 ‘‘(D) the energy efficiency and reduction in 

24 lifecycle greenhouse gases of the renewable 

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1 chemical or of the production method of the re2 newable chemical, and 

3 ‘‘(E) whether there is a reasonable expec4 tation of commercial viability. 

5 ‘‘(4) REDISTRIBUTION.—If a credit amount al6 located to a taxpayer for a taxable year with respect 

7 to any renewable chemical (determined without re8 gard to this paragraph) exceeds the amount of the 

9 credit with respect to such chemical determined 

10 under this section on the taxpayer’s return for such 

11 taxable year— 

12 ‘‘(A) the credit amount allocated to such 

13 taxpayer for such taxable year with respect to 

14 such renewable chemical shall be treated as 

15 being the amount so determined on the tax16 payer’s return, and 

17 ‘‘(B) such excess may be reallocated by the 

18 Secretary consistent with the requirements of 

19 paragraphs (2)(B) and (3). 

20 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec21 retary shall, upon making an allocation of credit 

22 amount under this section, publicly disclose the iden23 tity of the applicant and the amount of the credit 

24 with respect to such applicant. 

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1 ‘‘(f) TERMINATION.—Notwithstanding any other pro2 vision of this section, the Secretary may not allocate any 

3 credit amount under this section to any taxable year which 

4 begins more than 5 years after the date of the enactment 

5 of this section.’’. 

6 (b) CREDIT TO BE PART OF GENERAL BUSINESS

7 CREDIT.— 

8 (1) IN GENERAL.—Subsection (b) of section 38 

9 of such Code is amended by striking ‘‘plus’’ at the 

10 end of paragraph (35), by striking the period at the 

11 end of paragraph (36) and inserting ‘‘, plus’’, and 

12 by adding at the end the following new paragraph: 

13 ‘‘(37) the renewable chemicals production credit 

14 determined under section 45S(a).’’. 

15 (2) CREDIT ALLOWABLE AGAINST ALTERNATIVE

16 MINIMUM TAX.—Subparagraph (B) of section 

17 38(c)(4) of such Code is amended by redesignating 

18 clauses (vii) through (ix) as clauses (viii) through 

19 (x), respectively, and by inserting after clause (vi) 

20 the following new clause: 

21 ‘‘(vii) the credit determined under sec22 tion 45S,’’. 

23 (c) CLERICAL AMENDMENT.—The table of sections 

24 for subpart D of part IV of subchapter A of chapter 1 

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1 of such Code is amended by adding at the end the fol2 lowing new item: 

‘‘Sec. 45S. Credit for production of renewable chemicals.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to chemicals produced after the 

5 date of the enactment of this Act, in taxable years ending 

6 after such date. 

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