[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8137 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8137
To amend the Internal Revenue Code of 1986 to establish tax credits for
the production of, and investment in, certain renewable materials.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2026
Mrs. Fischbach (for herself and Ms. Budzinski) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish tax credits for
the production of, and investment in, certain renewable materials.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR RENEWABLE MATERIALS PRODUCTION.
(a) 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. RENEWABLE MATERIALS PRODUCTION CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
renewable materials production credit for any taxable year is an amount
equal to the product of--
``(1) 10 cents, multiplied by
``(2) the number of pounds of qualified renewable material
which is--
``(A) produced by the taxpayer during such taxable
year at a renewable material production facility, and
``(B) either--
``(i) sold by the taxpayer to an unrelated
person, or
``(ii) used by the taxpayer producing such
qualified renewable material,
only if such sale or use is in a trade or business of
the taxpayer during the taxable year.
``(b) Definitions.--For purposes of this section--
``(1) Qualified renewable material.--
``(A) In general.--The term `qualified renewable
material' means the biobased carbon content portion of
any product, including a chemical, produced using
biological conversion, thermal conversion, catalytic
conversion, chemical conversion, or a combination
thereof, from biomass.
``(B) Exclusions.--The term `qualified renewable
material' shall not include any product--
``(i) which is suitable for use as a fuel
in any vehicle (whether or not the vehicle is
manufactured primarily for use on public
streets, roads, and highways), marine vessel,
watercraft, or aircraft,
``(ii) used to generate heat or
electricity,
``(iii) which is suitable for use as food
or feed,
``(iv) produced from biomass which was not
manufactured, produced, grown, or extracted in
whole or in significant part within--
``(I) the United States (within the
meaning of section 638(1)), or
``(II) a possession of the United
States (within the meaning of section
638(2)), or
``(v) which is derived from coprocessing
biomass with a feedstock which is not biomass.
``(C) First sale or use to qualify.--In the case
where multiple points in a supply chain may be eligible
under this section, the qualified renewable material
that first meets the requirements of this section will
be the only qualified renewable material eligible.
``(2) Biobased carbon content portion.--The term `biobased
carbon content portion' means the biobased carbon content as
determined pursuant to ASTM D6866.
``(3) Biomass.--The term `biomass' has the same meaning
given such term in section 45K(c)(3), except `biomass' does not
include any qualified renewable material.
``(4) Renewable material production facility.--The term
`renewable material production facility' means any facility--
``(A) that produces qualified renewable material
during a qualifying credit period, and
``(B) located in the United States or a possession
of the United States (within the meaning of section
638(2)).
``(5) Qualifying credit period.--
``(A) In general.--The term `qualifying credit
period' means the 10-year period beginning on the later
of--
``(i) the date the renewable material
production facility was originally placed in
service,
``(ii) the date the modifications described
in subparagraph (B) were placed in service, or
``(iii) the date of enactment of this
section.
``(B) Modifications.--The modifications described
in this subparagraph are substantial modifications to
an existing facility which allow such facility to
produce qualified renewable material.
``(c) Special Rules.--
``(1) Credit attributable to taxpayer.--
``(A) In general.--Except as otherwise provided in
subparagraph (B) or in any regulations prescribed by
the Secretary, any credit under this section shall be
attributable to the person that sells or uses the
qualified renewable material.
``(B) Election.--If the person described in
subparagraph (A) makes an election under this
subparagraph in such time and manner as the Secretary
may prescribe by regulations, the credit under this
section--
``(i) shall be allowable to the person to
whom the qualified renewable material is sold,
and
``(ii) shall not be allowable to the person
described in subparagraph (A).
``(2) Coordination with investment credit.--The term
`renewable material production facility' shall not include any
facility for which a renewable materials investment credit
determined under section 48F is allowed under section 38 for
the taxable year or any prior taxable year.
``(3) Credit reduced for tax-exempt bonds.--Rules similar
to the rules of section 45(b)(3) shall apply.
``(4) Limitation.--The amount of the credit determined
under subsection (a) with respect to any facility for any
taxable year (determined after the application of paragraph
(3)) shall not exceed $10,000,000.''.
(b) Coordination With Clean Fuel Production Credit.--Section
45Z(d)(4)(B) is amended by adding at the end the following:
``(iv) The renewable materials production
credit under section 45BB.''.
(c) Credit Made Transferable.--Section 6418(f)(1) is amended--
(1) in subparagraph (A) by adding at the end the following:
``(xii) The renewable materials production
credit determined under section 45BB.'', and
(2) in subparagraph (B), by striking ``or (vii)'' and
inserting ``(vii), or (xii)''.
(d) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) the renewable materials production credit determined
under section 45BB.''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following:
``Sec. 45BB. Renewable materials production credit.''.
(f) Regulations.--The Secretary, in consultation with the Secretary
of Agriculture, shall establish regulations or other guidance for
implementing the credit established under this section within 180 days
of the date of enactment.
(g) Effective Date.--The amendments made by this section shall
apply to qualified renewable material produced on or after the date of
enactment.
SEC. 2. CREDIT FOR RENEWABLE MATERIALS INVESTMENT.
(a) In General.--Subpart E 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. 48F. RENEWABLE MATERIALS INVESTMENT CREDIT.
``(a) Allowance of Credit.--For purposes of section 46, the
renewable materials investment credit for any taxable year is an amount
equal to 30 percent of the qualified investment for the taxable year
with respect to any qualified facility.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year with respect to any
qualified facility is the basis of any qualified property
placed in service by the taxpayer during such taxable year
which--
``(A) is used in the production of qualified
renewable material, and
``(B) is part of a qualified facility.
``(2) Qualified property.--For purposes of this section,
the term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not
including a building or its structural
components), but only if such property is used
as an integral part of the qualified facility,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable,
``(C) which is constructed, reconstructed, erected,
or acquired by the taxpayer, and
``(D) the original use of which commences with the
taxpayer.
``(3) Qualified facility.--
``(A) In general.--The term `qualified facility'
means a renewable material production facility within
the meaning of section 45BB(b)(3).
``(B) Exclusion.--The term `qualified facility'
shall not include any facility for which a renewable
materials production credit determined under section
45BB is allowed under section 38 for the taxable year
or any prior taxable year.
``(4) Coordination with rehabilitation credit.--The
qualified investment with respect to any qualified facility for
any taxable year shall not include that portion of the basis of
any property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
``(c) Special Rules.--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(2) Credit reduced for tax-exempt bonds.--Rules similar
to the rules of section 45(b)(3) shall apply.''.
(b) Coordination With Clean Fuel Production Credit.--Section
45Z(d)(4)(B), as amended by section 1, is amended by adding at the end
the following:
``(v) The credit determined under section
46 to the extent that such credit is
attributable to the renewable materials
investment credit.''.
(c) Credit Made Transferable.--Section 6418, as amended by section
1, is amended--
(1) in subsection (f)(1)(A) by adding at the end the
following:
``(xiii) The renewable materials investment
credit determined under section 48F.'', and
(2) in paragraph (g)(3) by striking ``(xi)'' and inserting
``(xi), or (xiii),''.
(d) Conforming Amendments.--
(1) Section 46 of such Code is amended--
(A) in paragraph (6) by striking ``and'' at the
end,
(B) in paragraph (7) by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(8) the renewable materials investment credit.''.
(2) Section 49(a)(1)(C) of such Code is amended--
(A) by striking ``and'' at the end of clause (vii),
(B) by striking the period at the end of clause
(viii) and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(ix) the basis of any qualified property
which is part of a qualified facility under
section 48F.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48E(e)'' and inserting ``48E(e), or 48F(c)(1)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48E the following new item:
``Sec. 48F. Renewable materials investment credit.''.
(e) Regulations.--The Secretary, in consultation with the Secretary
of Agriculture, shall establish regulations or other guidance for
implementing the credit established under this section within 180 days
of the date of enactment.
(f) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of enactment.
<all>
To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.
#8137 | HR Congress #119
Subjects:
Last Action: Referred to the House Committee on Ways and Means. (3/27/2026)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text