Renewable Chemicals Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 3632 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 3632 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 January 14, 2026 Mr. Ricketts (for himself 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 2026''. 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. 45BB. 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) equal to-- ``(1) 15 percent of the sales price of each pound of a renewable chemical-- ``(A) produced-- ``(i) by the taxpayer, or ``(ii) for the taxpayer by a contract manufacturer under a binding written agreement, and ``(B) sold for its fair market value at retail by the taxpayer during the taxable year, reduced by ``(2) a percentage equal to so much of the percen