{"id":103064,"date":"2022-01-17T07:16:00","date_gmt":"2022-01-17T06:16:00","guid":{"rendered":"https:\/\/renewable-carbon.eu\/news\/?p=103064"},"modified":"2022-01-13T12:23:08","modified_gmt":"2022-01-13T11:23:08","slug":"kentucky-begins-renewable-chemical-production-program","status":"publish","type":"post","link":"https:\/\/renewable-carbon.eu\/news\/kentucky-begins-renewable-chemical-production-program\/","title":{"rendered":"Kentucky begins Renewable Chemical Production Program"},"content":{"rendered":"\n\n\n

Kentucky companies can now apply for the state\u2019s Renewable Chemical Production Program, Commissioner of Agriculture Dr. Ryan Quarles has announced. <\/strong><\/p>\n\n\n\n

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\u00a9 Kentucky Department of Agriculture<\/figcaption><\/figure><\/div>\n\n\n\n

\u201cAgriculture is a very conservation-minded industry,\u201d Commissioner Quarles said. \u201cThanks to new laws passed by the General Assembly, the Kentucky Department of Agriculture and other agencies are working together to provide an economic incentive for agribusinesses to look at ways to make new products out of renewable diesel or biodiesel. I\u2019m optimistic the private sector will help lead the way in innovation in this sector.\u201d<\/p><\/blockquote>\n\n\n\n

The program incentivizes the production of more than 30 specified chemicals derived from biomass feedstocks by giving eligible companies tax credits for their capital investment, job creation, and renewable chemical production. <\/p>\n\n\n\n

The program will share tax credits previously established for renewable diesel or bio-diesel production in the commonwealth. The total amount of tax credit shall be five cents per molecular pound of weight of renewable chemicals produced in Kentucky by an eligible business, unless the total amount of approved credits for all taxpayers exceeds the annual cap of $10 million for the program.<\/p>\n\n\n\n

Kentucky developed the program to capitalize on its resources and infrastructure and to support the growth of the renewable chemical manufacturing industry. It addresses the unique opportunity to advance the state\u2019s economy by utilizing biomass feedstocks for the production of environmentally sustainable products. <\/p>\n\n\n\n

For the renewable chemical production tax credit, the bill, which was passed by the Kentucky legislature in 2020, states eligible renewable chemicals are limited to building block chemicals with a biobased content percentage of at least 50 percent, except for chemicals sold or used for the production of food, feed, or fuel. <\/p>\n\n\n\n

Program eligibility requirements for renewable chemicals, creation of jobs, or investment of new capital related to renewable chemical production, and reporting requirements for eligible companies are established by 302 KAR 4:010<\/a>. <\/p>\n\n\n\n

The Kentucky Department of Agriculture will help administer the program, coordinating with the Kentucky Department of Revenue<\/a> in awarding the tax credits to eligible companies producing renewable chemicals. <\/p>\n\n\n\n

To be eligible for the renewable chemical production tax credit, a business must:<\/p>\n\n\n\n