BIO’s Brent Erickson today published a new column in Biofuels Digest, arguing that Congress should include policies supporting renewable chemicals in its tax reform effort. If Congress’ goal is to revitalize the manufacturing sector, it should level the playing field for biobased manufacturing.
BIO estimates that U.S. production of renewable chemicals and biofuels generates $135.4 billion in economic activity and employs nearly 1.7 million Americans. If you consider the full value chain of the biobased economy — including the industrial biotechnology’s contribution — the economic output rises to $205 billion.
Erickson points out that the United States has a competitive advantage in building the biobased economy — the value chain from agriculture to manufacturing of consumer products. “U.S. companies and universities have developed the most advanced technology and intellectual property in the world for biobased manufacturing and new feedstocks,” he says. The United States generates more than half of the value in the global biobased economy and Congress should seek to preserve that lead.
Policymakers have proposed several bipartisan tax incentives for the renewable chemical sector — including the Renewable Chemical Tax Credit championed by Sen. Debbie Stabenow (D-MI) and the Master Limited Partnership Act championed by Sen. Chris Coons (D-DE). Congress should include these proposals in tax reform.
Source: Biotechnology Innovation Organisation (BIO), press release, 2017-11-22.
Author: Paul Winters