Sponsors (6)
The bill incentivizes domestic use and sale of renewable natural gas with a $1/gal credit and cash payments to lower fuel costs and boost renewable markets, at the cost of reduced federal revenue, potential domestic supply/price effects, and added compliance burdens.
Taxpayers, small-business owners, fuel sellers, and fleet operators receive a $1.00 per gallon (or gasoline-gallon equivalent) credit plus upfront cash payments when they sell or use renewable natural gas (RNG) as vehicle, boat, or aviation fuel, lowering fuel costs or increasing revenue and improving business liquidity.
Utilities, energy companies and rural communities gain stronger incentives for domestic production and use of biomass-derived RNG, supporting renewable energy markets and potentially reducing fossil fuel consumption and related emissions.
Taxpayers face reduced federal revenue from the $1.00/gal credit, which could increase budget deficits or force offsetting spending cuts or tax increases.
Taxpayers and transportation-related consumers could see domestic price pressures or supply constraints because credits apply only to RNG produced and used in the U.S., excluding imported RNG.
Utilities, energy companies and business claimants must bear added administrative and compliance costs from registration, producer certifications, contract documentation, and energy-equivalency calculations required to receive credits or payments.
Based on analysis of 2 sections of legislative text.
Creates a $1.00-per-gallon tax credit for domestically produced compressed or liquefied RNG used as motor, marine, or aviation fuel from 2026–2035.
Introduced April 2, 2025 by Brian K. Fitzpatrick · Last progress April 2, 2025
Creates a $1.00-per-gallon tax credit for compressed or liquefied renewable natural gas (RNG) that is produced and used in the United States and sold or used as fuel for motor vehicles, motorboats, or aircraft. The credit applies per gasoline-gallon equivalent (based on Btu content), is available for fuel sold or used after December 31, 2025, and ends for sales/uses after December 31, 2035. Requires producers to register and obtain certification to qualify, allows certain blended RNG under contract and quantity limits, directs the Treasury to pay credits without interest when fuel is sold or used in a trade or business, and makes conforming tax-code changes to implement these rules.