Governor Terry Branstad wants Iowa to become the first state to offer a tax credit for transforming the “biochemicals” that are a byproduct of ethanol production.  Branstad discussed the issue wit former Iowa Governor and current U.S. Ag Secretary Tom Vilsack during a meeting in Washington D.C.

Branstad’s proposed state tax creidt would not be for the ethanol production companies that make byproducts like corn oil and dried distillers grain when they make ethanol.  Instead, the tax credit would be offered to companies that find new uses for those byproducts.

Vilsack gave Branstad the report the USDA released last week about biochemical production.