Pitching a Biochemical Tax Credit
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The state's economic development agency will pitch a new tax credit aimed at biochemical production during Iowa's next legislative session, which begins in January. The tax credit would be geared toward companies that use chemicals derived from ethanol production, but are not used for fuel.
"This credit would explicitly exclude the production of biodiesel and ethanol," Tim Whipple, general counsel for the Iowa Economic Development Authority Board, said. "We have incentives for that already. We don't need any additional."
For example, companies producing ethanol or other fuels from corn also produce a lot of corn oil. The tax credit, Whipple said, would give companies an incentive to use that oil or other chemicals in making de-icer, plastics or other products.
Authority Director Debi Durham said the tax credit would not be meant for "anchor" companies, such as Cargill and Archer Daniels Midland. Both have plants in Iowa.
Instead, she said, the tax credit should appeal to "supply chain companies" that can take chemicals created during processes used by Cargill and ADM and turn them into something else...(full article)
Matthew Patane, firstname.lastname@example.org 11:51 p.m. CDT October 17, 2014