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Ag groups back tax incentives to expand US biomanufacturing
The Biobased Materials Investment and Production Act would provide $0.10 per pound of qualifying renewable products or a 30% investment tax credit for eligible manufacturing projects.
More than 100 agricultural companies, organizations and producer groups have endorsed the Biobased Materials Investment and Production Act, backing federal tax incentives aimed at expanding US plant based biomanufacturing, according to a letter sent to members of Congress.
The proposed incentives would include $0.10 per pound of qualified renewable products produced in a given year or a 30% investment tax credit to offset construction and retrofitting costs for manufacturing facilities, the World Grain wrote. The incentives would not apply to food or fuel uses, and would exclude production that relies on feedstocks grown outside the United States.
Supporters said the measure would strengthen the domestic bioeconomy, which they described as a $489 billion industry employing nearly 4 million people. They also argued it could expand investment in industry infrastructure, increase market opportunities for farmers and create new economic opportunities for rural communities, while reducing reliance on foreign supply chains.
A survey cited by the group found that 73% of consumers, in a representative sample of 1,000 people, supported federal incentives to grow plant based product manufacturing in the United States, the outlet reported.