[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2271 Introduced in Senate (IS)]

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114th CONGRESS
  1st Session
                                S. 2271

 To amend the Internal Revenue Code of 1986 to provide credits for the 
production of renewable chemicals and investments in renewable chemical 
             production facilities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 10, 2015

 Ms. Stabenow (for herself, Mr. Franken, and Mr. Coons) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide credits for the 
production of renewable chemicals and investments in renewable chemical 
             production facilities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Chemicals Act of 2015''.

SEC. 2. CREDITS FOR PRODUCTION OF RENEWABLE CHEMICALS AND INVESTMENTS 
              IN RENEWABLE CHEMICAL PRODUCTION FACILITIES.

    (a) Production of Renewable Chemicals.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new section:

``SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE CHEMICALS.

    ``(a) In General.--For purposes of section 38, the production 
credit for renewable chemicals for any taxable year is an amount 
(determined separately for each renewable chemical produced by the 
taxpayer) equal to $0.15 per pound of biobased content of each 
renewable chemical produced by the taxpayer during the taxable year.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) with respect to a renewable chemical produced by the 
taxpayer during any taxable year shall not exceed the credit amount 
allocated for purposes of this section by the Secretary to the taxpayer 
with respect to such chemical for such taxable year under section 
48E(e).
    ``(c) Biobased Content.--For purposes of this section, the term 
`biobased content' means, with respect to any renewable chemical, the 
biobased content of the total mass of organic carbon in such chemical 
(expressed as a percentage), determined by testing representative 
samples using the American Society for Testing and Materials (ASTM) 
D6866.
    ``(d) Renewable Chemical.--For purposes of this section--
            ``(1) In general.--The term `renewable chemical' means any 
        chemical which--
                    ``(A) is produced by the taxpayer in the United 
                States (or in a territory or possession of the United 
                States) from renewable biomass. For purposes of this 
                section, the term `renewable biomass' has the meaning 
                given such term in section 9001(13) of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                8101(13)),
                    ``(B) is sold or used by the taxpayer--
                            ``(i) for the production of chemical 
                        products, polymers, plastics, or formulated 
                        products, or
                            ``(ii) as chemicals, polymers, plastics, or 
                        formulated products,
                    ``(C) has a biobased content percentage of 95 
                percent or higher,
                    ``(D) is the product of, or is reliant upon, 
                biological conversion, thermal conversion, or a 
                combination of biological and thermal conversion of 
                renewable biomass,
                    ``(E) is not sold or used for the production of any 
                food, feed, or fuel,
                    ``(F) is not a combination of renewable chemicals 
                on the list under subparagraph (G) (or added to such 
                list under paragraph (2)) for which a credit has been 
                claimed by the taxpayer in any taxable year under this 
                section or section 48E, and
                    ``(G) is acetic acid, acrylic acid, acyl glutamate, 
                adipic acid, algae oils, algae sugars, 1,4-butanediol 
                (BDO), iso-butanol, n-butanol, C10 and higher 
                hydrocarbons produced from olefin metathesis, 
                carboxylic acids produced from olefin metathesis, 
                cellulosic sugar, diethyl methylene malonate, 
                dodecanedioic acid (DDDA), esters produced from olefin 
                metathesis, ethyl acetate, ethylene glycol, farnesene, 
                2,5-furandicarboxylic acid, gamma-butyrolactone, 
                glucaric acid, hexamethylenediamine (HMD), 3-hydroxy 
                propionic acid, isoprene, itaconic acid, levulinic 
                acid, polyhydroxyalkonate (PHA), polylactic acid (PLA), 
                polyethylene furanoate (PEF), polyethylene 
                terephthalate (PET), polyitaconic acid, polyols from 
                vegetable oils, poly(xylitan levulinate ketal), 1,3-
                propanediol, 1,2-propanediol, rhamnolipids, succinic 
                acid, terephthalic acid, or p-xylene.
            ``(2) Additional renewable chemicals.--The Secretary may 
        add chemicals to the list of renewable chemicals in paragraph 
        (1)(G). Not later than 180 days after the enactment of this 
        section, the Secretary, in consultation with the Secretary of 
        Agriculture, shall establish a program to consider applications 
        from taxpayers to add renewable chemicals to such list. Any 
        chemical added to such list must meet the requirements set 
        forth in subparagraphs (A) through (E) of paragraph (1) 
        (without regard to the phrase `by the taxpayer' in 
        subparagraphs (A) and (B) thereof).
    ``(e) Coordination With Investment Credit for Renewable Chemical 
Production Facilities.--See section 48E(f) for rules coordinating 
section 48E with this section.
    ``(f) Termination.--Notwithstanding any other provision of this 
section or section 48E, the Secretary may not allocate any credit 
amount under this section to any taxable year which begins more than 5 
years after the date of the enactment of this section.''.
            (2) Credit to be part of general business credit.--
        Subsection (b) of section 38 of such Code is amended by 
        striking ``plus'' at the end of paragraph (35), by striking the 
        period at the end of paragraph (36) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(37) the renewable chemicals production credit determined 
        under section 45S(a).''.
    (b) Investment Credit in Lieu of Production Credit.--
            (1) In general.--Section 46 of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of paragraph 
        (5), by striking the period at the end of paragraph (6) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(7) the renewable chemical production facilities 
        credit.''.
            (2) Renewable chemical production facilities credit.--
        Subpart E of part IV of subchapter A of chapter 1 of such Code 
        is amended by inserting after section 48D the following:

``SEC. 48E. INVESTMENT CREDIT FOR RENEWABLE CHEMICAL PRODUCTION 
              FACILITIES.

    ``(a) In General.--For purposes of section 46, the renewable 
chemical production facilities credit for any taxable year is an amount 
equal to 30 percent of the basis of any eligible property which is a 
part of a renewable chemical production facility placed in service by 
the taxpayer during such taxable year.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) with respect to a renewable chemical production facility 
of the taxpayer during any taxable year shall not exceed the credit 
amount allocated for purposes of this section by the Secretary to the 
taxpayer for such taxable year under subsection (e).
    ``(c) Renewable Chemical Production Facility.--For purposes of this 
section--
            ``(1) In general.--The term `renewable chemical production 
        facility' means a facility used to produce renewable 
        chemicals--
                    ``(A) which is owned by the taxpayer,
                    ``(B) which is originally placed in service after 
                the date of the enactment of this section and before 
                the first day of the taxable year which begins 6 years 
                after the date of the enactment of this section, and
                    ``(C) with respect to which--
                            ``(i) no credit has been allowed under 
                        section 45S, and
                            ``(ii) the taxpayer makes an irrevocable 
                        election to have this section apply.
            ``(2) Eligible property.--The term `eligible property' 
        means any property--
                    ``(A) which is--
                            ``(i) tangible personal property, or
                            ``(ii) other tangible property (not 
                        including a building or its structural 
                        components),
                but only if such property is used as an integral part 
                of the renewable chemical production facility, and
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(3) Renewable chemical.--The term `renewable chemical' 
        has the meaning given such term by section 45S(d).
    ``(d) Special Rules.--
            ``(1) Denial of production credit.--No credit shall be 
        allowed under section 45S for any taxable year with respect to 
        any renewable chemical production facility.
            ``(2) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(e) National Limitation on Credits for Renewable Chemicals.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, the Secretary, in 
        consultation with the Secretary of Agriculture, shall establish 
        a program to allocate credit amounts under this section and 
        section 45S to applicants for taxable years ending after the 
        date of the enactment of this section.
            ``(2) Limitations.--
                    ``(A) Aggregate limitation.--The total amount of 
                credits that may be allocated under such program shall 
                not exceed $500,000,000.
                    ``(B) Taxpayer limitation.--The amount of credits 
                that may be allocated to any taxpayer for any taxable 
                year under such program shall not exceed $25,000,000. 
                For purposes of the preceding sentence, all persons 
                treated as a single employer under subsection (a) or 
                (b) of section 52, or subsection (m) or (o) of section 
                414, shall be treated as one taxpayer.
            ``(3) Selection criteria.--In determining to which 
        taxpayers to make allocations of the credit amount under such 
        program, the Secretary shall take into consideration--
                    ``(A) the number of jobs created and maintained 
                (directly and indirectly) in the United States 
                (including territories and possessions of the United 
                States) as result of such allocation during the credit 
                period and thereafter,
                    ``(B) the degree to which the production of the 
                renewable chemical demonstrates reduced dependence on 
                imported feedstocks, petroleum, non-renewable 
                resources, or other fossil fuels,
                    ``(C) the technological innovation involved in the 
                production method of the renewable chemical,
                    ``(D) the energy efficiency and reduction in 
                lifecycle greenhouse gases of the renewable chemical or 
                of the production method of the renewable chemical, and
                    ``(E) whether there is a reasonable expectation of 
                commercial viability.
            ``(4) Redistribution.--If a credit amount allocated to a 
        taxpayer for a taxable year with respect to any renewable 
        chemical or renewable chemical production facility (determined 
        without regard to this paragraph) exceeds the amount of the 
        credit with respect to such chemical determined under this 
        section on the taxpayer's return for such taxable year--
                    ``(A) the credit amount allocated to such taxpayer 
                for such taxable year with respect to such renewable 
                chemical shall be treated as being the amount so 
                determined on the taxpayer's return, and
                    ``(B) such excess may be reallocated by the 
                Secretary consistent with the requirements of this 
                subsection.
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making an allocation of credit amount under this section, 
        publicly disclose the identity of the taxpayer and the amount 
        of the credit with respect to such taxpayer.
    ``(f) Coordination With Production Credit for Renewable 
Chemicals.--
            ``(1) In general.--If a taxpayer makes an election under 
        paragraph (2) with respect to a renewable chemical production 
        facility, a credit shall not be allowed under section 45S for 
        any renewable chemical produced by such facility.
            ``(2) Election.--If no credit has been allowed under 
        section 45S with respect to a renewable chemical produced by a 
        renewable chemical production facility, a taxpayer may make an 
        irrevocable election to have this section apply with respect to 
        such facility in lieu of section 45S with respect to such 
        renewable chemical.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary to carry out this section and 
section 45S.
    ``(h) Termination.--The Secretary may not allocate any credit 
amount under this section to any taxable year which begins more than 5 
years after the date of the enactment of this section.''.
    (c) Credits Allowable Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by 
redesignating clauses (vii) through (ix) as clauses (ix) through (xi), 
respectively, and by inserting after clause (vi) the following new 
clauses:
                            ``(vii) the credit determined under section 
                        45S,
                            ``(viii) the credit determined under 
                        section 46 to the extent that such credit is 
                        attributable to the renewable chemical 
                        production facilities credit under section 
                        48E,''.
    (d) Clerical Amendments.--
            (1) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45S. Credit for production of renewable chemicals.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 48E. Investment credit for renewable chemical production 
                            facilities.''.
    (e) Effective Dates.--
            (1) Production credit.--The amendments made by subsection 
        (a) shall apply to renewable chemicals produced after the date 
        of the enactment of this Act, in taxable years ending after 
        such date.
            (2) Investment credit.--The amendments made by subsection 
        (b) shall apply to renewable chemical production facilities 
        placed in service after the date of the enactment of this Act, 
        in taxable years ending after such date.
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