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Renewable Chemical Production Tax Credit Act

Tax credits under the Renewable Chemical Production Tax Credit Act are intended to stimulate the emerging biotechnology and bioproducts sector in Nebraska and incentivize the development of renewable chemicals.


Eligible Business

To be eligible to receive tax credits for the production of renewable chemicals, a business must first apply to the Nebraska Department of Economic Development (“DED”) to be certified as an eligible business. To be certified as an eligible business, the applicant must: (i) produce at least one million pounds of renewable chemicals in Nebraska during the calendar year for which tax credits are sought, (ii) be physically located in Nebraska, (iii) have organized, expanded, or located in Nebraska on or after January 1, 2021, and (iv) be compliant with all agreements entered into under the Act and any other tax credit or programs administered by DED or the Nebraska Department of Revenue.

Tax Credit Limits

DED may certify up to $3 million in tax credits per calendar year for 2022 and 2023 and up to $6 million in tax credits per calendar year for 2024 and beyond. The tax credits available to an eligible business shall not exceed $1.5 million per year.

Renewable Chemical

A renewable chemical is a molecule that is converted from a sugar, starch, polysaccharide, glycerin, lignin, fat, grease, or oil derived from plants, animals, algae, or a protein capable of being converted to a first or secondarily derived product that can be further refined into a higher-value chemical, material, or consumer product by means of a biological or chemical conversion process with a significant biobased content that can be used for products including polymers, plastics, food additives, solvents, intermediate chemicals, or other formulated products with a significant nonfossil carbon content. Renewable chemical includes biobased chemicals that can be a food, feed, or fuel additive and supplements, vitamins, nutraceuticals, and pharmaceuticals.  Renewable chemical does not include a chemical sold or used as fuel.


Renewable Chemical Production Tax Credit Act

Tax credits to businesses located in Nebraska who produce renewable chemicals.

Application Period: Applications open March 1, 2022.

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Application & Program Resources

Annual Reports to the Legislature
  • 77-6601 Act, how cited. 
  • 77-6602 Legislative findings. 
  • 77-6603 Terms, defined. 
  • 77-6604 Eligible business; program certification application; approval; requirements; agreement. 
  • 77-6605 Program certification application; consideration; limitation. 
  • 77-6606 Tax credit; application; contents; requirements; approval; effect. 
  • 77-6607 Tax credit; amount; use; how claimed. 
  • 77-6608 Tax credit; reduction, termination, or rescission; repayment or recapture of tax credit. 
  • 77-6609 Trade secret; confidentiality. 
  • 77-6610 Reports. 
  • 77-6611 Rules and regulations. 

Have questions?

Madeline Adkins

Business Incentives Consultant