This bill adds a new renewable natural gas fuel credit to the Internal Revenue Code. It gives a $1.00 credit for each gallon (or gasoline gallon equivalent) of renewable natural gas that a taxpayer sells or uses as fuel in motor vehicles, motorboats, or aviation. "Renewable natural gas" is defined as compressed or liquefied gas made from biomass, produced by a person registered under section 4101(a), and accompanied by a producer certification. The bill sets rules for blended renewable natural gas when there is a prior contract and producer certification that specify quantities and time periods. It defines a gasoline gallon equivalent for nonliquid gas as 124,800 Btu. The credit and related payments apply to fuel sold or used after December 31, 2025, and stop applying after December 31, 2035. The bill also requires producer registration, prevents double benefits with other credits, and says no credit is allowed for renewable natural gas produced outside the United States for use outside the United States. The Department of the Treasury (the Secretary) must pay qualified sellers or users the credit amount without interest under existing payment rules.
No publicly available information on total or estimated federal costs is included in the bill text. The text does state that the Secretary shall pay eligible taxpayers an amount equal to the credit without interest under existing payment rules.
The bill text states its goals are to promote increased use of renewable natural gas, reduce greenhouse gas and other harmful transportation-related emissions that hurt air quality, and increase job creation and economic opportunity across the country.
No publicly available information on opponents' views is included in the bill text or provided metadata.