New tax credits were approved by the Colorado Economic Development Commission this week in several areas in order to create new jobs for the state.

The areas include manufacturing electric planes, expanding farming operations, aiding in multi-family construction projects, and production of hemp-based bioplastics.

How Would Colorado’s New Tax Incentives Help the Hemp Industry?

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The total amount of tax incentives that were approved on Thursday, October 20, 2022, equates to $6.94 million. One of the companies that may be receiving some of this money is known as Project Dunia which manufactures hemp-based bioplastics. The company will need $20 million and may receive over $200,000 of the tax credits if it decides to land in Colorado’s Weld County instead of its other option which is in Texas.

Colorado has proven to be quite the guinea pig when it comes to hemp after becoming one of the first states to legalize marijuana for recreational purposes, but what is hemp-based bioplastic?

What is Hemp-Based Bioplastic?

According to Dr. Benjamin Caplan of the CED Clinic, hemp-based bioplastic is a “strong, durable, and environmentally-friendly" alternative to plastic as we know it.

It decomposes completely in less than a year, absorbs carbon dioxide and converts it into oxygen, and is made from a fiber that can be 10x stronger than steel.

While hemp-based manufacturing once thrived in the United States, things like 1951’s Boggs Act and 1970’s Controlled Substances Act effectively criminalized marijuana and put a stop to hemp production, instead leaving the country to rely on oil-based plastics.

However, recent strides have been made with regard to marijuana and hemp production and Colorado may, quite possibly, be at the helm once again.

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