Referred to the House Committee on Ways and Means.
This bill adds a new renewable natural gas (RNG) fuel credit to the Internal Revenue Code: $1.00 per gallon (or gasoline gallon equivalent) of compressed or liquefied RNG sold or used as motor vehicle, motorboat, or aviation fuel. It defines RNG, sets rules for blended RNG, requires producer registration and producer certification, restricts the credit to domestically produced RNG, authorizes direct payments equal to the credit amount, and sunsets the credit December 31, 2035.
Left emphasizes climate and community benefits; right emphasizes subsidy cost and market distortion.
Relative to its intended legislative type, this bill establishes a clear substantive change to the tax code by creating a renewable natural gas fuel credit and related payment authority and integrates that change into existing statutory provisions, but it relies on broad delegations to the Secretary for regulatory detail and omits fiscal impact disclosure and many operational specifics.
This bill adds a new renewable natural gas (RNG) fuel credit to the Internal Revenue Code: $1.00 per gallon (or gasoline gallon equivalent) of compressed or liquefied RNG sold or used as motor vehicle, motorboat, or aviation fuel.
It defines RNG, sets rules for blended RNG, requires producer registration and producer certification, restricts the credit to domestically produced RNG, authorizes direct payments equal to the credit amount, and sunsets the credit December 31, 2035.
Amendments expand registration under section 4101(a), prevent double benefits, and take effect for fuel sold or used after December 31, 2025.
Technically detailed and time-limited incentive improves prospects, but new refundable payments and fiscal cost lower standalone chances; attachment to broader bill would raise odds.
Relative to its intended legislative type, this bill establishes a clear substantive change to the tax code by creating a renewable natural gas fuel credit and related payment authority and integrates that change into existing statutory provisions, but it relies on broad delegations to the Secretary for regulatory detail and omits fiscal impact disclosure and many operational specifics.
Left emphasizes climate and community benefits; right emphasizes subsidy cost and market distortion.
These are examples from the analysis, not a ranked list of the most-affected groups.
Left emphasizes climate and community benefits; right emphasizes subsidy cost and market distortion.
Generally supportive because the credit incentivizes low-carbon fuels, waste-to-energy projects, and domestic jobs.
Would want stronger safeguards on lifecycle greenhouse gas accounting, equity in who benefits, and limits on locking in fossil infrastructure.
Cautiously favorable as a market incentive that could reduce emissions and support jobs if cost-effective.
Wants clear budget scoring, credible verification, and oversight to prevent wasteful payments or limited climate impact.
Skeptical due to new federal subsidies and administrative expansion; prefers market-driven, state-level, or tax-neutral approaches.
Might support aspects promoting domestic energy, but opposes federal payment programs and regulatory complexity.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically detailed and time-limited incentive improves prospects, but new refundable payments and fiscal cost lower standalone chances; attachment to broader bill would raise odds.
The bill has not accumulated any surfaced votes yet.
Left emphasizes climate and community benefits; right emphasizes subsidy cost and market distortion.
Technically detailed and time-limited incentive improves prospects, but new refundable payments and fiscal cost lower standalone chances; a…
Relative to its intended legislative type, this bill establishes a clear substantive change to the tax code by creating a renewable natural gas fuel credit and related payment authority and integrates that change into e…
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