Bill aims to create $1 per gallon tax credit for sales of RNG

Reps. Linda T. Sánchez, D-Calif., and Brian Fitzpatrick, R-Pa., on March 30 reintroduced the Renewable Natural Gas Incentive Act, which would create a $1 per gallon tax credit for the sale of renewable natural gas (RNG) used in transportation.  The bill was previously introduced in both the U.S. Senate and the U.S. House of Representatives last year.

Following its introduction, the bill, H.R. 2448, was referred to the House Committee on Ways and Means.

The credit would apply to fuel sold or used after Dec. 31, 2023, and would be in place for 10 years. It would apply to RNG used in motor vehicles, motorboats or used as an aviation fuel.

“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.” 

“Renewable natural gas (RNG) is a clean, efficient, and affordable energy option that can reduce emissions among large supply-chain vehicles,” Fitzpatrick said. “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 legislation is supported by the Moving Us Forward coalition, which is a coalition of diverse partners advocating for the use of renewable fuels and incentives to invest in RNG. Members of the coalition include the American Biogas Council, American Farm Bureau Federation, California Dairies, Clean Energy Fuels, National Milk Producers Federation, Opal Fuels, and WM.   

A full copy of the legislation is available on Sánchez’s website.