New law could help expand plant-based materials in the US
The bipartisan legislation would offer incentives for producers of renewable materials
Credit: broeasied on Unsplash
A new bill, introduced in April by Representatives Michelle Fischbach, a Republican from Minnesota; and Nikki Budzinski, a Democrat from Illinois; aims to offer tax incentives for producers of certain bio-based and renewable materials in the US. If it passes, the bill will incentivise their production through tax cuts.
This progress could provide plant farmers with new markets, hence strengthening local rural communities. It could also offer give consumers more choice and keep manufacturing innovation local to US production.
“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.”
She adds that some everyday products, such as plastics or industrial chemicals, are still dependent on petroleum derived from foreign territories. This new legislation aims to provide tax incentives for companies that use American-grown biomass to create renewable materials.
The Bio-Based Materials Investment and Production Act allows taxpayers to select the incentive that best suits their business model, whether it is a 10 cent per pound tax credit for materials produced and sold (capped at $10 million annually), or a 30% investment tax credit to offset construction costs of manufacturing plants.
“This 30% investment tax credit would help alleviate some of the price pain points to build out the business,” said Budzinski. Then, once the business is in place, this bill would provide a production tax credit that’s worth 10 cents for every pound of product produced.”
The proposal is also supported by the Plant Based Products Council, which advocates for the advancement of bio-based products. Executive director James Glueck has said: “These products reduce reliance on fossil resources, strengthen critical supply chains, and support vibrant rural economies. 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.” Recent surveys from the Plant Based Products Council have revealed that 86% of respondents planned to purchase plant-based products within three months and that 73% of consumers of different political affiliations supported federal incentives for US-based plant-based manufacturing.
The US agricultural bioeconomy employs 4 million people and is worth nearly $490 billion. Industry projections predict that the market for renewables could rise by $550 billion by 2050.
If you’re inspired to take a stand for farmed animals, join Species Unite’s 30-Day Plant-Powered Challenge. It’s a month of free recipes, tips, and daily emails that help you explore delicious plant-based meals and reduce demand for farmed animals. Sign up here to make a compassionate change, one meal at a time.
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