Iowa Govenor Terry Branstad has signed a tax credit bill aimed at accelerating development of biorenewable chemicals in the state of Iowa. In attendance at the signing were Lt. Gov. Kim Reynolds, Iowa Economic Development Authority director Debi Durham, and several Iowa legislators. The event took place in Sukup Atrium in Iowa State University’s Biorenewables Complex.
In March, the bill passed the Iowa Senate with a vote of 46-3 and the Iowa House by a count of 95-1. The credit will create an income tax credit equal to 5¢ per pound of qualified chemicals produced. It allows new businesses (those operating less than five years) up to $1 million, while existing businesses can receive $500,000. The credit is limited to $10 million per fiscal year in total awards.
Whitepaper Outlines Biorenewables Opportunities
A whitepaper, “Biobased Chemicals: The Iowa Opportunity,” helped inform Iowa’s leaders on how statewide economic development incentives could address the unique needs of the budding industry. It showed how Iowa could emerge as a leader in biorenewable chemical investment and job creation in coming years.
The report, released by Iowa’s Cultivation Corridor and the Iowa Biotechnology Association, was written by Jill Euken, deputy director of the Bioeconomy Institute; Dermot Hayes, a professor of economics; and Brent Shanks, director of the Center for Biorenewable Chemicals (CBiRC) and a Distinguished Professor of chemical and biological engineering.
“We’re pleased our report helped state leaders see the importance of tax credits as a way to incent growth of new commercial biorenewable enterprises,” Euken said. “It is part of our land-grant mission to conduct research that helps inform public policy.”