SB1656 Summary: Renewable Chemical Production Tax Credit Program Act

• Creates a tax credit program for eligible businesses that produce renewable chemicals from biomass feedstock in Illinois, with credit amount equal to $0.05 per pound of renewable chemicals produced.

• Establishes eligibility requirements including that businesses must be physically located in Illinois, operated for profit, organized or expanded after the bill's effective date, and not engaged in professional services, healthcare, or retail operations.

• Limits maximum tax credits to $1,000,000 for businesses operating five years or less, and $500,000 for businesses operating more than five years, with a $25,000,000 annual cap on all credits issued on a first-come, first-served basis.

• Requires businesses to only receive credits for renewable chemical production exceeding their pre-eligibility production threshold and prohibits credits for the same chemical when produced as both a first product and secondarily derived product in the same year.

• Sunsets the program on January 1, 2024, and requires annual reporting to the General Assembly on program activities including production volumes, feedstock usage, employee counts, and tax credits issued.