Bill · S. 3632· Senate(119-S-3632)
Renewable Chemicals Act of 2026
- Introduced
- 1/14/2026
- Last activity
- 1/14/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Pete Ricketts
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Renewable Chemicals Act of 2026 aims to amend the Internal Revenue Code of 1986 to support the production of renewable chemicals. It introduces a production credit worth 15 percent of the sales price for specific renewable chemicals. Additionally, it provides an investment credit of 30 percent for the basis of eligible property used in renewable chemical production facilities. The bill establishes specific definitions for what qualifies as a renewable chemical and a production facility. A national limitation on these credits is set at a total of $500,000,000. These tax incentives are intended to encourage domestic production and technological innovation in the chemical industry.
Yes· 3 of 9
Would business owners be better off under this?+6
The bill provides significant tax credits for business owners investing in or producing renewable chemicals.
Is this likely to create jobs?+5
The bill provides tax credits that specifically incentivize the creation and maintenance of jobs in the renewable chemical industry.
Does this cut the pollution that drives climate change?+5
The bill incentivizes the production of biobased renewable chemicals which can reduce lifecycle greenhouse gases.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Financial incentives for renewable chemical production: Taxpayers can receive a credit equal to 15 percent of the sales price of each pound of a renewable chemical produced and sold at retail (Section 2(a)(1)).
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Support for industrial investments: Taxpayers can receive a credit equal to 30 percent of the basis of eligible property placed in service as part of a renewable chemical production facility (Section 2(b)(2)).
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Job creation and economic activity: The Secretary is instructed to consider the number of jobs created and maintained, both directly and indirectly, in the United States when allocating credits (Section 2(b)(3)(A)).
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Reduced reliance on foreign resources: The credit allocation process considers how much a renewable chemical reduces dependence on imported feedstocks, petroleum, and other fossil fuels (Section 2(b)(3)(B)).
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Environmental and health benefits: The bill looks for production methods that improve safety, efficiency, and environmental performance, while reducing risks to human health (Section 2(b)(3)(E)).
Potential Negative Impacts for People
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Caps on available financial support: There is a national limit where the total amount of credits allocated cannot exceed $500,000,000 (Section 2(b)(3)(A)(ii)).
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Limits on individual taxpayer benefits: The amount of credits that can be allocated to any single taxpayer is capped at $25,000,000 (Section 2(b)(3)(A)(ii)).
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Limited duration of incentives: The Secretary is prohibited from allocating credit amounts for any taxable year that begins more than 5 years after the act's enactment (Section 2(a)(1)(f) and Section 2(b)(h)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Job Creation+5Improves Economic Growth+4Improves Small Business Support+3
- Demographic And Interest Groups
- Good For Business Owners+6Good For Union Workers+3
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+5Improves Environmental Protections+4
- Education And Technology
- Increases Scientific Research Funding+3
- National Security And Foreign Policy
- Improves International Trade+3
- 1/14/2026
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
Christopher CoonsDemocrat · Delaware