Iowa’s abundance of biomass feedstock offers opportunities for economic growth beyond food and fuel.
Senate File 2300, which passed the Iowa Senate on a bipartisan vote on March 16, would further spur our state’s success in the biosciences by providing up to $10 million in tax credits per year to industries that turn byproducts from biomass feedstock into higher-value chemicals.
A recent report by Iowa State University shows that the U.S. market for chemicals is more than $250 billion a year. By substituting Iowa bio-based chemicals for petroleum in products, such as crude oil and natural gas, SF 2300 would add another tool to our state’s economic development toolbox.
This Renewable Chemical Production Tax Credit, administered by the Iowa Economic Development Authority, would provide up to $1 million for start-ups and up to $500,000 for established businesses each year. If SF 2300 becomes law, tax credits will be available on a first-come, first-served basis for chemicals produced between January 1, 2017, and December 31, 2026.
This is the type of promising growth opportunities we should pursue, according to a 2014 study that laid out an economic road map for Iowa. SF 2300 now goes to the House for further consideration.
For the complete ISU report, go to www.cultivationcorridor.org/assets/pdf/Iowa-Biobased-Chemicals-Full-Report.pdf. Iowa’s strategic economic road map can be found at www.iowaeconomicdevelopment.com/userdocs/documents/ieda/2014BattelleReport.pdf.