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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDINGS; SENSE OF CONGRESS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Qualifying Renewable Chemical Production Tax Credit 
Act of 2013’’. 
(b) FINDINGS.—Congress finds that a successful bio- 
based products industry represents— 
(1) a historic opportunity to add jobs to the 
United States chemicals and plastics sectors, 
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(2) an opportunity to increase energy security 
in the United States and Western Hemisphere, 
(3) a prime opportunity to reduce the depend-
ence of the United States on foreign oil, 
(4) an opportunity to increase the supply of pe-
troleum products available to the fuel markets, 
thereby keeping costs of petroleum-based products 
low, 
(5) the prospect of driving business to down-
stream facilities by integrating bio-based products 
production into existing networks, and 
(6) a great opportunity to attract capital to 
both new and existing facilities. 
(c) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States should encourage domestic 
production of renewable chemicals. 
SEC. 2. CREDIT FOR THE PRODUCTION OF RENEWABLE 
CHEMICALS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE 
CHEMICALS. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
renewable chemicals production credit for any taxable year 
is an amount (determined separately for each renewable 
chemical produced by the taxpayer) equal to $0.15 per 
pound of eligible content of renewable chemical produced 
by the taxpayer during the taxable year. 
‘‘(b) LIMITATION.—The credit determined under sub-
section (a) with respect to any renewable chemical pro-
duced by any taxpayer during any taxable year shall not 
exceed the credit amount allocated by the Secretary to the 
taxpayer with respect to such chemical for such taxable 
year under subsection (e). 
‘‘(c) ELIGIBLE CONTENT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible content’ 
means, with respect to any renewable chemical, the 
biobased content percentage of the total mass of or-
ganic carbon in such chemical. 
‘‘(2) BIOBASED CONTENT PERCENTAGE.—The 
term ‘biobased content percentage’ means, with re-
spect to any renewable chemical, the biobased con-
tent of such chemical (expressed as a percentage) 
determined by testing representative samples using 
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the American Society for Testing and Materials 
(ASTM) D6866. 
‘‘(d) RENEWABLE CHEMICAL.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘renewable chem-
ical’ means any chemical which— 
‘‘(A) is produced by the taxpayer in the 
United States (or in a territory or possession of 
the United States) from renewable biomass, 
‘‘(B) is sold, or used, by the taxpayer— 
‘‘(i) for the production of chemical 
products, polymers, plastics, or formulated 
products, or 
‘‘(ii) as chemicals, polymers, plastics, 
or formulated products, and 
‘‘(C) is not sold or used for the production 
of any food, feed, or fuel. 
‘‘(2) EXCEPTIONS.—Such term shall not in-
clude any chemical if— 
‘‘(A) the biobased content percentage of 
such chemical is less than 25 percent, 
‘‘(B) 10,000,000 pounds or more of such 
chemical was produced during calendar year 
2000 from renewable biomass, 
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‘‘(C) such chemical is not either the prod-
uct of, or reliant upon, biological conversion, 
thermal conversion, or a combination of biologi-
cal and thermal conversion, of renewable bio-
mass, or 
‘‘(D) such chemical is composed of renew-
able chemicals that are eligible for a credit 
under this section. 
‘‘(3) RENEWABLE BIOMASS.—The term ‘renew-
able biomass’ has the meaning given such term in 
section 9001(12) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101(12)). 
‘‘(e) ALLOCATION OF CREDIT AMOUNTS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after enactment of this section, the Secretary, in 
consultation with the Secretary of Agriculture, shall 
establish a program to allocate credit amounts under 
this section to applicants for taxable years. 
‘‘(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-
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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 per-
son. 
‘‘(3) SELECTION
CRITERIA.—In determining 
which taxpayers to make allocations of credit 
amount under this section, 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 result of such allocation 
during the credit period and thereafter, 
‘‘(B) the degree to which the production of 
the renewable chemical demonstrates reduced 
dependence on imported feedstocks, petroleum, 
non-renewable resources, or other fossil fuels, 
‘‘(C) the technological innovation involved 
in the production method of the renewable 
chemical, 
‘‘(D) the energy efficiency and reduction in 
lifecycle greenhouse gases of the renewable 
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