WASHINGTON, D.C. -- Congresswoman Michelle Fischbach (MN-07) and Congresswoman Nikki Budzinski (IL-13) introduced the Biobased Materials Investment and Production Act to strengthen the domestic supply chain and create new markets for American farmers by incentivizing the production of biobased chemicals and materials.
While the United States has made significant strides in biofuels, many other everyday products, from plastics to industrial chemicals, remain dependent on foreign petroleum. The legislation aims to bridge that gap by providing tax incentives for companies that use American-grown biomass to create renewable materials.
"This legislation is a crucial step in supporting our farmers and manufacturers," said Rep. Fischbach. "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."
“From innovative materials to lifesaving therapies, the biomanufacturing industry is making breakthroughs every day,” said Congresswoman Budzinski. “As the representative of America’s ‘Silicorn Valley’ in Central and Southern Illinois, I know how important it is to grow our country’s leadership in this expanding field. I’m proud to be leading a bipartisan effort alongside Congresswoman Fischbach to drive investments in biomanufacturing that will have wide-reaching benefits for farmers, rural economies, consumers, and the environment.”
The Biobased Materials Investment and Production Act allows taxpayers to choose the incentive that best fits their business model:
- Production Support: A tax credit of $0.10 per pound for renewable materials produced and sold, up to $10 million a year, or
- Investment Support: A 30% investment tax credit to help offset the capital costs of constructing or retrofitting manufacturing plants.
This legislation ensures that American businesses have the support they need to lead the world in renewable material production.
This legislation has significant support from outside groups:
“America’s farmers and innovators are uniquely positioned to lead the next generation of renewable materials and domestic manufacturing. This legislation helps unlock that potential by supporting investment in U.S. biomanufacturing facilities producing plant-based products from a range of agricultural commodities. These products reduce reliance on fossil resources, strengthen critical supply chains, and support vibrant rural economies,” said Plant Based Products Council Executive Director James Glueck. “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 U.S. corn refining industry plays a critical role in transforming American-grown crops into the ingredients and biobased materials that support food, agriculture, and a growing bioeconomy. This legislation recognizes the importance of domestic manufacturing and provides the certainty needed to invest in new technologies and facilities that expand the production of renewable chemicals and materials,” said Corn Refiners Association President and CEO John Bode. “By strengthening U.S. supply chains and supporting innovation, Congress can help ensure America remains a global leader in biobased manufacturing while delivering economic benefits for farmers, workers, and communities across the country.”
"Illinois corn farmers are ready to lead in the next generation of American manufacturing, and this legislation from Congresswomen Budzinski and Fischbach is a critical step forward,” said Illinois farmer and IL Corn Growers Association President, Mark Bunselmeyer. “By investing in biobased products and expanding access to biorefinery funding, we’re creating new markets for corn and strengthening rural economies. At a time of global instability, this effort also helps reduce reliance on petroleum-based products and strengthens our domestic energy and supply chain security. This is about more than fuel—it’s about turning homegrown corn into innovative products that drive jobs, sustainability, and long-term demand for agriculture."
Jed Bower - President, National Corn Growers Association
"Corn growers are very appreciative of Representatives Fischbach and Budzinski for introducing this legislation that will diversify demand for our farmers, strengthen rural economies and support domestic manufacturing. Boosting market opportunities for bioproducts made from agricultural feedstocks creates new revenue streams for growers of many different crops."
“This legislation offers an important opportunity to ensure American innovation leads to American economic development,” said Ag Bioeconomy Coalition Spokesperson Danielle Beck. “Providing robust ag bioeconomy infrastructure in the U.S. will create new jobs in rural communities, support farm income, and protect American national security. American agriculture leads the world in productivity and sustainability; it’s time we also lead the world in bioeconomy investment and innovation. We are grateful to Representatives Fischbach and Budzinski for their bipartisan leadership on behalf of rural America.”
