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A broad array of more than 100 companies, organizations, producer groups, and more have signed a letter to members of Congress urging support for the Biobased Materials Investment and Production Act. The bill, which would offer tax incentives to grow the American ag bioeconomy, has bipartisan support in the House of Representatives.
“As the United States works to strengthen its manufacturing base, enhance supply chain resilience, and grow the domestic bioeconomy, this legislation represents an important opportunity to expand investment and bolster America’s global leadership in biomanufacturing,” the letter reads.
The legislation, H.R. 8137, was introduced by Reps. Michelle Fischbach (R-MN) and Nikki Budzinski (D-IL). The bill’s bipartisan support extends to cosponsors Reps. Jim Baird (R-IN), Mariannette Miller-Meeks (R-IA), and Ashley Hinson (R-IA).
“A strengthened U.S. bioeconomy will create new economic opportunities for rural communities, increase market opportunities for farmers, and expand choices for consumers. The legislation will also strengthen our national security by reducing reliance on foreign supply chains while enhancing American competitiveness,” the letter adds.
The American ag bioeconomy is a $489 billion industry that employs nearly 4 million people and produces a wide range of consumer and industrial products. With incentives that would facilitate the development of industry infrastructure, the sector is poised to grow further in the U.S.
The Biobased Materials Investment and Production Act would offer tax incentives to expand production capacity for plant-based products in the U.S. The incentives would include $0.10 per pound of qualified renewable products produced in a given year or a 30% investment tax credit to offset construction and retrofitting costs for manufacturing facilities. The incentives would not be available for food or fuel uses or for production that uses feedstocks grown outside the U.S.
According to PBPC’s 2025 Consumer Trends Research, consumers are seeking plant-based products as part of their regular purchasing patterns and support policies that would incentivize bioeconomy infrastructure construction. In a survey with a representative sample of 1,000 consumers from across the country, 73% said they supported federal incentives to expand plant-based product manufacturing in the U.S.
Plant Based Products Council
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