Iowa's biochemical industry would receive up to $10 million annually in state tax incentives under a bill that received a warm reception Wednesday in an Iowa Senate subcommittee.

Senate Study Bill 3001 would provide state tax credits to attract investment in renewable chemical manufacturing and advanced bio-refining. The goal is to build upon Iowa’s renewable fuels industry, which makes products like ethanol and biodiesel from farm crops and crop residue. Iowa needs to move swiftly because of competition for businesses looking to invest in the industry, business lobbyists say.