Key facts
- Over 100 companies and organizations are urging Congress to support the Biobased Materials Investment and Production Act (H.R. 8137).
- The bipartisan legislation aims to provide tax incentives for expanding U.S. biomanufacturing capacity for plant-based products.
- Incentives include $0.10 per pound of qualified renewable products or a 30% investment tax credit for facility construction and retrofitting.
- The bill excludes food, fuel, and feedstocks grown outside the U.S.
- Supporters state the legislation will strengthen the domestic bioeconomy, rural communities, and national security by reducing reliance on foreign supply chains.
A coalition of over 100 companies, organizations, and producer groups has formally urged members of Congress to support the Biobased Materials Investment and Production Act (H.R. 8137). This bipartisan legislation, introduced by Representatives Michelle Fischbach (R-MN) and Nikki Budzinski (D-IL), aims to bolster the American ag bioeconomy by providing tax incentives for expanding domestic biomanufacturing capacity.
The proposed incentives include either $0.10 per pound of qualified renewable products produced annually or a 30% investment tax credit to offset the costs of constructing or retrofitting manufacturing facilities. These incentives are specifically designed to exclude food and fuel production, as well as the use of feedstocks not grown within the United States, thereby stimulating rural economies and promoting the use of domestically sourced agricultural commodities.
Proponents argue that the bill will enhance supply chain resilience, strengthen national security by reducing reliance on foreign sources, and increase market opportunities for American farmers. The American ag bioeconomy is currently a significant industry, valued at $489 billion and employing nearly 4 million people, with projections indicating substantial future growth.
Consumer demand for plant-based products is reportedly high, with 86% of consumers planning to purchase such items in the next three months, according to PBPC's 2025 Consumer Trends Research. The same research indicates that 73% of consumers support federal incentives for expanding U.S. plant-based product manufacturing, with this support crossing partisan lines.