April 3, 2023. U.S. Congresswoman Linda T. Sánchez and Congressman Brian Fitzpatrick introduced the Renewable Natural Gas Incentive Act, bipartisan legislation that would provide a tax credit for renewable natural gas (RNG), which can be used in heavy-duty vehicles like buses and freight trucks to immediately reduce greenhouse gas and particulate emissions while further supporting clean and efficient transportation across the country.
“Transitioning to renewable natural gas will help us curb the impacts of climate change while providing a cleaner, more affordable fuel option for the industries that keep America moving,” said Congresswoman Linda T. Sánchez. “This tax credit will allow transit agencies, school districts, freight haulers, and package delivery companies to replace aging fleets with sustainable alternatives, all without slowing production or increasing costs. I am proud to introduce this bipartisan legislation that will protect our planet, drive down emissions, and keep our economy running.”
“RNG is a clean, efficient, and affordable energy option that can reduce emissions among large supply-chain vehicles,” said Congressman Fitzpatrick. “The tax credit offered in the bipartisan Renewable Natural Gas Incentive Act will incentivize businesses to utilize RNG and further boost our economy and promote clean transportation. I am proud to co-lead this legislation alongside Congresswoman Sánchez.”
The tax code currently provides a 50-cent credit for natural gas used in transportation including natural gas from renewable sources. This credit, however, is less than the credit for renewable biodiesel which has consistently benefited from a $1 a gallon tax credit and is currently only available through 2024.
The Renewable Natural Gas Incentive Act would create a $1.00 per gallon tax credit for sellers of renewable natural gas used for transportation for 10 years, allowing businesses to maximize the credit’s effectiveness to reduce their emissions while investing in zero-emission vehicle infrastructure.
More information in www.usgasvehicles.com