Bipartisan legislation recently introduced in the U.S. Senate would provide a tax credit for heavy-duty vehicles that use renewable natural gas.
The Renewable Natural Gas Incentive Act would amend the Internal Revenue Code of 1986 to promote the increased use of renewable natural gas by creating a $1 per gallon tax credit for sellers of renewable natural gas used for transportation.
Currently, renewable natural gas, compressed or liquefied gas derived from biomass, has a lower tax credit than similar transportation fuels.
Under the bill, blended renewable natural gas would be the same as renewable natural gas fuel.
U.S. Sens. Thom Tillis (R-NC) and Mark R. Warner (D-VA) introduced the bill.
“Renewable natural gas is a clean, affordable, and reliable fuel source that provide sustainable transportation for fuel industries across the country,” Tillis said. “This bill incentivizes the use of clean energy while promoting economic growth through lowering the cost of doing business and decreasing reliance on foreign energy.”
“This tax credit will help incentivize the use of clean, reliable, and affordable fuel sources and continue to aid the transition to a clean economy while creating good-paying jobs and reducing our reliance on foreign energy,” Warner said.
The goal of the bill is to reduce greenhouse gas and other harmful transportation-related emissions and to increase economic opportunity.