I 
115TH CONGRESS 
1ST SESSION H. R. 3149 
To amend the Internal Revenue Code of 1986 to provide credits for the 
production of renewable chemicals and investments in renewable chemical 
production facilities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2017 
Mr. PASCRELL (for himself, Ms. SA´NCHEZ, Mr. FITZPATRICK, and Mr. COS-
TELLO of Pennsylvania) 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 
credits for the production of renewable chemicals and 
investments in renewable chemical production facilities, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Renewable Chemicals 
Act of 2017’’. 
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SEC. 2. CREDITS FOR PRODUCTION OF RENEWABLE CHEMI-
CALS AND INVESTMENTS IN RENEWABLE 
CHEMICAL PRODUCTION FACILITIES. 
(a) PRODUCTION OF RENEWABLE CHEMICALS.— 
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE 
CHEMICALS. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
production credit for renewable chemicals for any taxable 
year is an amount (determined separately for each renew-
able chemical) equal to $0.15 per pound of biobased con-
tent of each renewable chemical produced during the tax-
able year— 
‘‘(1) by the taxpayer, or 
‘‘(2) for the taxpayer by a contract manufac-
turer under a binding written agreement. 
‘‘(b) LIMITATION.—The amount of the credit deter-
mined under subsection (a) with respect to a renewable 
chemical produced during any taxable year shall not ex-
ceed the credit amount allocated for purposes of this sec-
tion by the Secretary to the taxpayer with respect to such 
chemical for such taxable year under section 48E(e). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
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cinic acid, terephthalic acid, vegetable fatty 
acid-derived ethyl esters containing vege-
table oil, or p-xylene. 
‘‘(B) ADDITIONAL
RENEWABLE
CHEMI-
CALS.—The Secretary may add chemicals to the 
list of renewable chemicals in subparagraph 
(A)(vii). Not later than 180 days after the en-
actment of this section, the Secretary, in con-
sultation with the Secretary of Agriculture, 
shall establish a program to consider applica-
tions from taxpayers to add renewable chemi-
cals to such list. Any chemical added to such 
list must meet the requirements set forth in 
clauses (i) through (v) of subparagraph (A) 
(without regard to the phrase ‘by the taxpayer’ 
in clause (ii) thereof). 
‘‘(2) BIOBASED CONTENT.—The term ‘biobased 
content’ means, with respect to any renewable chem-
ical, the biobased content of the total mass of or-
ganic carbon in such chemical (expressed as a per-
centage), determined by testing representative sam-
ples using the American Society for Testing and Ma-
terials (ASTM) D6866. 
‘‘(3) RENEWABLE BIOMASS.—The term ‘renew-
able biomass’ has the meaning given such term in 
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section 9001(13) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101(13)). 
‘‘(d) NATIONAL LIMITATION ON CREDITS FOR RE-
NEWABLE CHEMICALS.—See section 48E(e) for rules re-
lating to national limitation on credits under this section. 
‘‘(e) COORDINATION WITH INVESTMENT CREDIT FOR 
RENEWABLE CHEMICAL PRODUCTION FACILITIES.—See 
section 48E(f) for rules coordinating section 48E with this 
section. 
‘‘(f) TERMINATION.—Notwithstanding any other pro-
vision of this section or section 48E, the Secretary may 
not allocate any credit amount under this section to any 
taxable year which begins more than 5 years after the date 
of the enactment of this section.’’. 
(2) CREDIT TO BE PART OF GENERAL BUSI-
NESS CREDIT.—Subsection (b) of section 38 of such 
Code is amended by striking ‘‘plus’’ at the end of 
paragraph (35), by striking the period at the end of 
paragraph (36) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(37) the renewable chemicals production credit 
determined under section 45S(a).’’. 
(b) INVESTMENT CREDIT IN LIEU OF PRODUCTION 
CREDIT.— 
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(1) IN GENERAL.—Section 46 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of paragraph (5), by striking the period 
at the end of paragraph (6) and inserting ‘‘, and’’, 
and by adding at the end the following new para-
graph: 
‘‘(7) the renewable chemical production facili-
ties credit.’’. 
(2) RENEWABLE
CHEMICAL
PRODUCTION
FA-
CILITIES CREDIT.—Subpart E of part IV of sub-
chapter A of chapter 1 of such Code is amended by 
inserting after section 48D the following: 
‘‘SEC. 48E. INVESTMENT CREDIT FOR RENEWABLE CHEM-
ICAL PRODUCTION FACILITIES. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
renewable chemical production facilities credit for any tax-
able year is an amount equal to 30 percent of the basis 
of any eligible property which is a part of a renewable 
chemical production facility placed in service by the tax-
payer during such taxable year. 
‘‘(b) LIMITATION.—The amount of the credit deter-
mined under subsection (a) with respect to a renewable 
chemical production facility of the taxpayer during any 
taxable year shall not exceed the credit amount allocated 
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for purposes of this section by the Secretary to the tax-
payer for such taxable year under subsection (e). 
‘‘(c) RENEWABLE CHEMICAL PRODUCTION FACIL-
ITY.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘renewable chem-
ical production facility’ means a facility— 
‘‘(A) which is owned by the taxpayer, 
‘‘(B) which is originally placed in service 
after the date of the enactment of this section 
and before the first day of the taxable year 
which begins 6 years after the date of the en-
actment of this section, 
‘‘(C) with respect to which— 
‘‘(i) no credit has been allowed under 
section 45S for chemicals produced at such 
facility in any previous taxable year, and 
‘‘(ii) the taxpayer makes an irrev-
ocable election to have this section apply, 
and 
‘‘(D) which is used to produce renewable 
chemicals. 
‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 
property’ means any property— 
‘‘(A) which is— 
‘‘(i) tangible personal property, or 
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‘‘(ii) other tangible property (not in-
cluding a building or its structural compo-
nents), 
but only if such property is used as an integral 
part of the renewable chemical production facil-
ity, and 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(3) RENEWABLE
CHEMICAL.—The term ‘re-
newable chemical’ has the meaning given such term 
by section 45S(c)(1). 
‘‘(d) CERTAIN
QUALIFIED
PROGRESS
EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to the 
rules of subsections (c)(4) and (d) of section 46 (as in 
effect on the day before the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of 
this section. 
‘‘(e) NATIONAL LIMITATION ON CREDITS FOR RE-
NEWABLE CHEMICALS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this section, the 
Secretary, in consultation with the Secretary of Ag-
riculture, shall establish a program to allocate credit 
amounts under this section and section 45S to tax-
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payers who produce renewable chemicals for taxable 
years ending after the date of the enactment of this 
section. 
‘‘(2) LIMITATIONS.— 
‘‘(A) AGGREGATE LIMITATION.—The total 
amount of credits that may be allocated under 
such program shall not exceed $500,000,000. 
‘‘(B) 
TAXPAYER
LIMITATION.—The 
amount of credits that may be allocated to any 
taxpayer for any taxable year under such pro-
gram shall not exceed $25,000,000. For pur-
poses of the preceding sentence, all persons 
treated as a single employer under subsection 
(a) or (b) of section 52, or subsection (m) or 
(o) of section 414, shall be treated as one tax-
payer. 
‘‘(3) SELECTION CRITERIA.—In determining to 
which taxpayers to make allocations of the credit 
amount under such program, the Secretary shall 
take into consideration— 
‘‘(A) the number of jobs created and main-
tained (directly and indirectly) in the United 
States (including territories and possessions of 
the United States) as a result of such allocation 
during the credit period and thereafter, 
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being the amount so determined on the tax-
payer’s return, and 
‘‘(B) such excess may be reallocated by the 
Secretary consistent with the requirements of 
this subsection. 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making an allocation of credit 
amount under this section, publicly disclose the iden-
tity of the taxpayer and the amount of the credit 
with respect to such taxpayer. 
‘‘(f) COORDINATION WITH PRODUCTION CREDIT FOR 
RENEWABLE CHEMICALS.—If a taxpayer makes an elec-
tion under subsection (c)(1)(C)(ii) with respect to a renew-
able chemical production facility, a credit shall not be al-
lowed under section 45S for any renewable chemical pro-
duced by such facility. 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary to carry 
out this section and section 45S. 
‘‘(h) TERMINATION.—The Secretary may not allocate 
any credit amount under this section to any taxable year 
which begins more than 5 years after the date of the en-
actment of this section.’’. 
(c) CREDITS ALLOWABLE AGAINST ALTERNATIVE 
MINIMUM TAX.—Subparagraph (B) of section 38(c)(4) of 
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the Internal Revenue Code of 1986 is amended by redesig-
nating clauses (vii) through (ix) as clauses (ix) through 
(xi), respectively, and by inserting after clause (vi) the fol-
lowing new clauses: 
‘‘(vii) the credit determined under sec-
tion 45S, 
‘‘(viii) the credit determined under 
section 46 to the extent that such credit is 
attributable to the renewable chemical pro-
duction facilities credit under section 
48E,’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘Sec. 45S. Credit for production of renewable chemicals.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 48E. Investment credit for renewable chemical production facilities.’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to renewable chemicals produced 
and renewable chemical production facilities placed in 
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service after the date of the enactment of this Act, in tax-
able years ending after such date. 
Æ 
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