House Committee Debates Bill to Expand Biogas Tax Credits


The U.S. House Ways and Means Committee on Space, Science and Technology is now debating H.B.5489, a bill that would enable more biogas applications, including compressed natural gas (CNG) vehicle fuel, to qualify for the federal Section 45 investment tax credit (ITC).

According to the bill summary, this legislation “would amend the Internal Revenue Code of 1986 to make qualified biogas property and qualified manure resource recovery property eligible for the energy credit and to permit new clean renewable energy bonds to finance qualified biogas property, and for other purposes.”

Whereas the current 30% ITC only applies to biogas-based electricity projects, the proposed bill would enable other biogas applications, such as CNG, to qualify for the incentive.

One of the findings of the bipartisan bill states that “biogas systems will save federal, state and local taxpayers money by converting waste into useful products, such as fuel, fertilizer, thermal heat, feedstock for hydrogen fuel cells and renewable chemicals.”

The Agriculture Environmental Stewardship Act was introduced by Reps. Tom Reed, R-N.Y., and Ron Kind, D-Wis., and co-sponsored by Reps. Bob Gibbs, R-Ohio; John Moolenaar, R-Mich.; Dan Newhouse, R-Wash.; Reid Ribble, R-Wis.; Elise Stefanik, R-N.Y.; Mike Simpson, R-Idaho; David Valadao, R-Calif.; Joe Courtney, D-Conn.; Suzan DelBene, D-Wash.; Mark Pocan, D-Wis.; Tim Walz, D-Minn.; and Peter Welch, D-Vt.

A similar bill is expected to be introduced in the Senate.

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