The Biobased Materials Investment and Production Act, introduced by congresswomen Budzinski and Fischbach, aims to boost the US plant-based materials sector by offering federal tax incentives to companies. The legislation offers a 30% investment tax credit for building or retrofitting biomanufacturing facilities, as well as a production credit of 10 cents per pound of renewable material produced and sold, capped at $10 million annually. This would help companies alleviate some of the costs of building out their business and provide ongoing support for production.

Federal biomanufacturing policy has been in flux, with the Biden administration directing R&D funding towards biomanufacturing and the Department of Defense investing in alternative protein companies. The Plant Based Products Council supports this legislation, stating that it would reduce reliance on fossil resources, strengthen supply chains, and support rural economies. By making it easier to scale biobased manufacturing in the US, Congress can position the country as a global leader in renewable materials and products, making them more accessible and affordable for American consumers.