Agricultural Environmental Stewardship Act of 2025

This proposal gives a one-year extension to a federal tax credit that helps pay for equipment that turns organic waste into useful gas (biogas). Projects that start construction in 2025 can still get the credit, instead of the credit ending for projects that had to start by the end of 2024. The equipment must convert biomass into methane and capture it for sale or productive use. The new deadline moves from December 31, 2024, to December 31, 2025, and applies to property whose construction begins after December 31, 2024.

Key points

• Who is affected: Farms, dairies, food processors, and wastewater facilities that install biogas systems.
• What changes: The tax credit for qualified biogas equipment is extended by one year, moving the start-of-construction deadline to December 31, 2025.
• When: Applies to projects that begin construction after December 31, 2024, through the new 2025 deadline.