Renewable Natural Gas Incentive Act of 2025

This bill creates a new $1.00-per-gallon tax credit to boost renewable natural gas (RNG) as a transportation fuel. The credit applies when RNG is sold or used as fuel for cars, trucks, buses, boats, or planes, including an equivalent amount for non‑liquid RNG. RNG must come from biomass and be made by a registered producer who certifies the fuel. Blended fuel can also qualify if there’s a contract and proper certification showing how much RNG is in the mix. Businesses that sell or use RNG for these purposes can request payment of the credit amount from the Treasury. The credit can’t be “double counted” with certain other benefits, and it doesn’t apply to RNG produced outside the U.S. for use outside the U.S..

The credit would start for fuel sold or used in 2026 and run through the end of 2035 .

• Who is affected: RNG producers, fuel sellers and stations, fleets (trucking, buses), airports, and others who use or sell RNG as transportation fuel .
• What changes: A $1.00/gal credit for qualifying RNG; blends can count with contracts and certification; payments available to businesses that sell or use the fuel; no double dipping; fuel produced and used outside the U.S. doesn’t qualify .
• When: Applies to fuel sold or used after December 31, 2025, and ends after December 31, 2035 .