Maine · Biobased Products · ME-BIOCHEM-001
Renewable Chemicals Tax Credit
Publication revised September 24, 2026. Sourcebook page 133.
Credit amount / calculation
$0.08 per pound of qualifying renewable chemical meeting the statutory biobased definition.
Business fit and eligible activity
Potentially relevant when wood residuals are converted into qualifying renewable chemicals rather than fuels. Qualifying production, feedstock or energy technology; ordinary wood residuals are not automatically eligible.
Eligibility and practical use
This credit can matter to a wood-based chemical producer. The product must qualify as a renewable chemical and cannot be food, feed or fuel. Ordinary pellets, chips and boiler fuel do not qualify.
Illustrative business benefit
A residuals business converts wood-derived feedstock into 1.5 million pounds of a product that actually meets the statutory renewable-chemical definition. At $0.08 per pound, the nominal annual credit would be $120,000. Ordinary pellets, chips, or thermal fuel would not qualify merely because they are biobased.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Confirm the product is a qualifying renewable chemical, not fuel, food or feed.
Official sources
- legislature.maine.gov — Title 36, §5219-XX: Renewable chemicals tax credit (legislature.maine.gov)
Related programs
Dirigo Capital Investment Credit
Generally
Exceptional fit: eligible sectors expressly include forestry/fishing and manufacturing, so both some forest operations and mills can qualify.
Dirigo Training Credit
$2,000 per employee receiving qualifying training
Eligible forestry and manufacturing businesses can receive a credit for qualified employee training.
Research Expense Tax Credit
5% of excess qualified research expenses plus 7
Qualifying Maine research can produce an incremental credit for wood-products manufacturers.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.