Tax credit for renewable natural gas legislation introduced in Congress
U.S. Reps. Linda Sanchez (D-CA) and Brian Fitzpatrick (R-PA) announced last week that they had introduced legislation providing a tax credit for renewable natural gas.
The Renewable Natural Gas Incentive Act would create a $1 per gallon tax credit for renewable natural gas sellers when used for transportation. The tax credit would last for 10 years. Currently, the tax code provides a 50-cent credit for natural gas used in transportation, which also applies to renewable natural gas. The credit is less than the $1 per gallon tax credit for renewable biodiesel.
“Transitioning to renewable natural gas will help us curb the impacts of climate change while providing a cleaner, more affordable fuel option for the industries that keep America moving,” Sánchez said. “This tax credit will allow transit agencies, school districts, freight haulers, and package delivery companies to replace aging fleets with sustainable alternatives, all without slowing production or increasing costs. I am proud to introduce this bipartisan legislation that will protect our planet, drive down emissions, and keep our economy running.”
Sanchez and Fitzpatrick said the tax credit would allow businesses to use it while reducing emissions and investing in zero-emission vehicle infrastructure.
“Renewable natural gas (RNG) is a clean, efficient, and affordable energy option that can reduce emissions among large supply-chain vehicles,” said Congressman Fitzpatrick. “The tax credit offered in the bipartisan Renewable Natural Gas Incentive Act will incentivize businesses to utilize RNG and further boost our economy and promote clean transportation. I am proud to co-lead this legislation alongside Congresswoman Sánchez.”
The bill is supported by the Moving Us Forward coalition, which includes a number of industry organizations like the American Biogas Council, ANGI Energy, Clean Energy Fuels, and Tulsa Gas Technologies.
