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New legislation aims to expand the manufacturing of plant-based materials in the US.
Representatives Michelle Fischbach, a Republican politician from Minnesota, and Nikki Budzinski, a Democrat from Illinois, introduced the bipartisan bill in April.
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If successful, the Biobased Materials Investment and Production Act would incentivize biomanufacturing through tax cuts, thereby providing new markets for farmers, investment in rural communities, and a stronger supply chain.
This could involve production support, whereby producers receive a tax credit of USD $0.10 per pound of renewable materials produced and sold up to $10 million per year, or investment support, whereby producers receive a 30 percent investment tax credit to offset the cost of constructing or retrofitting traditional manufacturing plants.
Taxpayers would be able to choose the incentive that best fits their business model. However, producers of food, fuel, and foreign-grown feedstocks would not be eligible.
According to Fishbach, the US has made “significant strides” in biofuels, but many everyday products, from plastics to industrial chemicals, remain dependent on imported petroleum. The Biobased Materials Act would encourage companies to use “American-grown biomass” to create renewable materials instead.
“This legislation is a crucial step in supporting our farmers and manufacturers,” Fischbach said. “By providing tax incentives, we can drive investment into rural communities, reduce our reliance on petroleum-based products, and strengthen our national supply chain using American-grown resources.”
Read more: Scientists Just Made A Low-Fat Vegan Cheese With ‘Superior Meltability’
Biobased bill could make renewable materials ‘more accessible and affordable for American consumers’
The Plant Based Products Council, which advocates for “harnessing the power” of biobased materials, has said that it is “proud to support” the new act.
James Glueck, the executive director of the Plant Based Products Council, said, “By making it easier to scale biobased manufacturing here at home, Congress can ensure the United States leads the globe while making renewable materials, chemicals, and products more accessible and affordable for American consumers.”
The future success of the Biobased Materials Investment and Production Act will now depend on Fischbach and Budzinski’s new bill gaining traction in Congress.
As reported by World Bio Market Insights, America’s agricultural bioeconomy already generates $489 billion annually and employs nearly 4 million people. The industry predicts that the renewable products market could grow by $550 billion by 2050.
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