S. 3632 — Renewable Chemicals Act of 2026

This section establishes a production tax credit under new IRC §45BB (added to the general business credit) equal to 15% of the sales price per pound of each qualified renewable chemical produced in the United States from U.S. renewable biomass and sold at retail for fair market value (reduced by the percentage of non-biobased content), subject to IRS allocation under new IRC §48F and unavailable for taxable years beginning more than five years after enactment. It also establishes an investment tax credit under new IRC §48F equal to 30% of the basis of eligible property (i.e., depreciable tangible personal property or integral other tangible property, excluding buildings) that is part of a renewable chemical production facility owned by the taxpayer, placed in service after enactment and before the first day of the taxable year beginning six years after enactment, and for which the taxpayer irrevocably elects this credit (forgoing any §45BB credit for chemicals produced there); both credits are subject to a national limitation, coordination rules, and definitions tying to USDA biobased product certification standards under 7 U.S.C. §8102 (requiring renewable chemicals to have at least 95% biobased content, exclude food/feed/fuel/pharmaceutical uses, and qualify as chemical intermediates). (Thus, taxpayers may claim either a production credit on chemical sales or an investment credit on facility property, but not both for the same facility.)