Rep. Linda T. Sánchez, D-Calif., and Rep. Brian Fitzpatrick, R-Pa., have introduced the Renewable Natural Gas Incentive Act, bipartisan legislation that would provide a tax credit for renewable natural gas that is used in heavy-duty vehicles in order to immediately reduce greenhouse gas and particulate emissions while further supporting clean and efficient transportation across the country.
“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,” says Sánchez.
The tax code currently provides a $0.50 credit for natural gas used in transportation, including natural gas from renewable sources. This credit, however, is less than the $1.00/gallon tax credit for renewable biodiesel and is currently only available through 2024.
The Renewable Natural Gas Incentive Act would create a $1.00/gallon tax credit for sellers of renewable natural gas used for transportation for 10 years, allowing businesses to maximize the credit’s effectiveness to reduce their emissions while investing in zero-emission vehicle infrastructure.
You can view the full text of the Renewable Natural Gas Incentive Act here.