US House of Representatives to debate bill to extend biogas tax credits
The US House of Representatives’ has been presented with a bill to increase the number of biogas application that qualify for the federal Section 45 investment tax credit.
Currently only biogas-based electricity projects are eligible for the 30% tax credit, but the bill – titled the Agriculture Environmental Stewardship Act or H.R. 5489 – would see other biogas application, such as compressed renewable vehicle fuel natural gas, to also qualify for the incentive.
In addition, the bill would allow nutrient recovery systems and manure resource recovery to qualify for the credit and acquire financing through new clean renewable energy bonds.
In the bill, 14 Representatives encourage the US Secretary of the Treasury to engage in a biogas study with the Golden, Colorado-based National Renewable Energy Laboratory to determine the appropriate quality of biogas, production methods, and industry expansion plant within two years to expand the tax credit.
The American Biogas Council back the bill and says it will support farms in properly managing nutrients found in raw manure, in turn protecting waterways and enriching soils.
A similar bill is expected to be introduced in the Senate.