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New legislation targets plant-based infrastructure, offers tax incentives for growth

A bill that would provide incentives for infrastructure development in the plant-based products industry has been introduced in the U.S. House.

Bill co-author Nikki Budzinski says investments in the biomanufacturing sector will give farmers a boost.

“It would really incentivize the usage of our domestic feedstocks as we’re building out this new biomanufacturing base in places like my district,” she said. “We’re expanding markets for (farmers) where they definitely need new market access right now.”

The Illinois Democratic member of Congress says the legislation would offer tax incentives to expand production capacity for plant-based products in the U.S., offering strong markets for American producers, a wider array of product options for consumers, and critical support for domestic innovation.

“This 30% investment tax credit would help alleviate some of the price pain points to build out the business,” Budzinski said. “Then once the business is in place, this bill would provide a production tax credit that’s worth 10 cents for every pound of product produced.”

James Glueck is the executive director of the Plant Based Products Council. He tells Brownfield the American ag bioeconomy is currently a $489 billion industry but is poised for growth.

“We’ve got great innovation happening in our universities and the private sector,” Glueck said. “But when folks try to take a bright idea from the laboratory to our manufacturing line, the U.S. isn’t well situated for that right now. Folks often go to Europe, or to Asia to China for that step.”

Glueck says the market for renewable products is expected to grow by $550 billion by 2050.

Budzinski’s bill was co-introduced by Minnesota Republican Michelle Fischbach.

(Brownfield’s Brent Barnett and Jared White reported this story)

Rep. Nikki Budzinski

James Glueck