Sponsors (6)
The bill subsidizes domestically certified renewable natural gas to boost adoption and provide revenue certainty for producers, while imposing meaningful federal costs, compliance burdens, and eligibility limits that could raise prices for some buyers.
RNG producers and sellers (including small businesses and energy workers) receive a $1.00 per gallon (or GGE) credit and an explicit refund/payment mechanism, improving revenue certainty and cash flow for RNG businesses.
The policy makes renewable natural gas more competitive through a time-limited subsidy through 2035, creating a stronger incentive to adopt lower‑carbon transportation fuels.
Consumers and fleets that purchase RNG as vehicle, boat, or aviation fuel could see lower effective fuel costs if sellers pass through some or all of the $1.00 credit.
The $1.00/gallon credit will increase federal outlays and could raise the deficit or require spending offsets, imposing costs on U.S. taxpayers broadly.
Refund payments are required to be paid without interest, meaning taxpayers fund nominal payments while recipients do not bear interest-related costs—reducing fiscal discipline and the incentive for timely phase‑out.
New registration, certification, and contract documentation requirements increase compliance burden and administrative costs for RNG producers and purchasers, hitting small businesses and energy-sector firms.
Based on analysis of 2 sections of legislative text.
Creates a $1.00/gal refundable tax credit for renewable natural gas used as transportation or aviation fuel, adds registration/certification and anti‑double‑benefit rules, effective 2026–2035.
Introduced April 2, 2025 by Brian K. Fitzpatrick · Last progress April 2, 2025
Creates a refundable tax credit of $1.00 per gallon (or gasoline-gallon-equivalent for nonliquid forms) for renewable natural gas (RNG) sold or used as fuel in motor vehicles, motorboats, or aircraft. The credit requires producers to register, meet certification and blending rules, follow defined energy‑equivalency measures, and complies with anti‑double‑benefit and domestic‑origin rules; it applies to fuel sold or used after December 31, 2025 and ends after December 31, 2035. The measure adds RNG into existing fuel credit and refund rules in the tax code, extends the Treasury Secretary’s obligation to pay refunds for RNG credits, and makes conforming amendments to related provisions to prevent duplicate subsidies and set implementation requirements.