Report Calls for Iowa Biochemical Tax Credit

by George C. Ford (The Gazette) Authors contend state offers 'discernible advantages' -- A report released Thursday (January 13, 2016) contends Iowa is better positioned than many other states to capture a large share of the emerging biorenewable chemical market, but it needs to offer a “modest” tax credit to lure jobs and plants to Iowa.

“The Case for a Renewable Biochemical Tax Credit” was researched and written by three Iowa State University professors. It was commissioned by the Iowa Biotechnology Association and the Cultivation Corridor, a regional effort to bring more bioscience companies to Iowa.

The report notes that first generation biofuels — ethanol and biodiesel — have been economic drivers for Iowa. Ethanol production in Iowa accounts for $2.253 billion per year of gross domestic product and supports more than 8,693 jobs.

“Alternative value-added bioproducts are important for further growth of the biomanufacturing industry within Iowa,” the report states. “Biobased chemicals represent such an opportunity.

The petrochemical industry developed by locating new plants close to oil refineries. The report contends the biochemical industry is expected to take a similar approach with ethanol and other biomanufacturing plants. READ MORE and MORE (Iowa State)