Bipartisan legislation recently introduced in the U.S. House of Representatives would provide a tax credit for renewable natural gas (RNG) used in heavy-duty vehicles such as buses and freight trucks.
The Renewable Natural Gas Incentive Act would put the RNG tax credit on par with the $1-a-gallon renewable biodiesel tax credit that is available through 2024. The RNG credit would be available for 10 years for sellers of renewable natural gas used for transportation.
The current tax code provides a 50-cent credit for natural gas used in transportation, including natural gas from renewable sources.
U.S. Reps. Brian Fitzpatrick (R-PA) and Linda T. Sánchez (D-CA) introduced the bill.
“Renewable natural gas offers cleaner, more affordable, and sustainable transportation fuel for the industries that keep America running,” Sánchez said. “With this credit, transit agencies, school districts, freight haulers, and package delivery companies can invest in cleaner energy and replace aging fleets without slowing production or increasing costs. I am proud to introduce legislation that will protect our planet, keep our economy running, and drive down emissions in environmental justice communities while we continue to invest in zero-emission vehicles across the country.”
The legislation has the support of the Moving Us Forward coalition.