On March 1, 2022, applications for the Renewable Chemical Production Tax Credit Act (RCPTCA) opened for businesses located in Nebraska who produce renewable chemicals. Under the RCPTCA, an eligible business may be certified to earn up to $1.5 million in refundable tax credits per year. There are $1.5 million in tax credits still available for the 2022 calendar year.
For businesses 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 RCPTCA 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.