Governor Terry Branstad says companies already are expressing interest in the state’s new tax credit for firms that come up with new products made from the starches, sugars and oils left-over after ethanol and biodiesel are made.
“This credit sends the message that Iowa is truly open for business,” Branstad says. This “biochemical tax credit” is one of the 2016 legislature’s top accomplishments, according to Branstad.
“This is a very big deal and I’m excited about what it means for our state and how it positions us for the jobs of the future,” Branstad says. Experts say about 30 chemicals left over from biofuel production hold the greatest promise for household products as well as pharmaceuticals. Companies seeking this new tax credit will submit applications to the Iowa Economic Development Authority.
A total of $10 million in state tax credits will be awarded each year.