Renewable Chemical Production Tax Credit Act

The Renewable Chemical Production Tax Credit Act is not approving applications submitted in calendar years 2026-2029, as of May 6, 2025 due to the passage of LB650. Eligible Business 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 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. Tax Credit Limits 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. 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 the Foreign Adversarial Company Memo found in the Guidance Documents section. Applicants meeting the definition of foreign adversarial company will not be approved for benefits. Renewable Chemical A renewable chemical is a molecule that is converted from a oil derived from a protein capable of being converted to a first or secondarily derived product that can be further refined into a higher-value consumer product by means of a biological or chemical conversion process with a significant biobased content that can be used for products including chemicals, or other formulated products with a significant nonfossil carbon content. Renewable chemical includes biobased chemicals that can be a fuel additive and pharmaceuticals.  Renewable chemical does not include a chemical sold or used as fuel. Application Renewable Chemical Production Tax Credit Act Tax credits to businesses located in Nebraska who produce renewable chemicals. Application Period: Applications open March 1, 2022. The Renewable Chemical Production Tax Credit Act is not approving applications submitted in calendar years 2026-2029, as of May 6, 2025 due to the passage of LB650. Email Notifications To stay up to date on the latest news, subscribe to the Renewable Chemical Production Tax Credit Act email list here. Subscribe Application & Program Resources Guidance Documents Renewable Chemical Production Tax Credit Act Guidelines Renewable Chemical Production Tax Credit Application User Guide MEMO 25-04: LB 644 (2025) Foreign Advisory Company Annual Reports to the Legislature 2025 Annual Report 2024 Annual Report 2023 Annual R eport Statutes 77-6601  Act, how cited. 77-6602  Legislative findings. 77-6603  Terms, defined.