The Iowa Senate's Ways and Means Committee on Thursday passed a biorenewable chemicals production tax credit out of committee, which was a significant milestone for the measure. The committee voted 13-1 to approve the legislation, Senate File 2285.

"I think this indicates there is a pretty strong level of interest in getting the bill passed, and of course we're pleased to see the bipartisan nature of the progress," said Joe Hrdlicka, executive director of the Iowa Biotechnology Association.

The bill, which now moves to the Senate floor, provides for up to $10 million annually of tax credits to manufacturers based on their conversion of biofuel and feed byproducts into chemicals that could be used to produce high-value items such as pharmaceuticals and plastics. A similar version of the bill is in the House Ways and Means Committee.

The credit would be paid at 5 cents per pound of production, topped at $1 million for startups up to 5 years old and $500,000 for existing businesses.

FROM THE RECORD ARCHIVES:

Legislative preview: Biorenewable credit tax credit

Jan. 22, 2016 - Without fail, a few pieces of stubborn legislation appear year after year. Senior staff writer Kent Darr took a look in advance of the legislature opening at where things stood in the efforts to get renewable chemical production tax credits passed. Read the article >>>

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