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.

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.

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.

Applications for eligible businesses will be considered until the end of the 2025 calendar year. For calendar years 2026-2029, the director shall not approve certification applications for eligible businesses. Applications will re-open for consideration in 2030. See the final reading of LB650 for more information.

Legislative Bill 644 (2025) (codified as Neb. Rev. Stat. § 77-3,114) prohibits foreign adversarial companies from receiving benefits under an incentive program of the State of Nebraska. Prior to applying, please see Memo 25-04 Foreign Adversarial Company, found also in the Guidance Documents section. Applicants meeting the definition of foreign adversarial company will not be approved for benefits. See the final reading of LB644 for more information. For any further questions, please contact Madeline Adkins at 402-471-3794 or madeline.adkins@nebraska.gov.

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.