The bill would add biogas to the list of renewables that already receive a 30% federal investment tax credit and projects that inject renewable natural gas into the gas pipeline or use the biogas to power vehicle fleets would benefit.
‘This tax credit will help a dairy farmer who makes biogas from cow manure and then uses it to heat the buildings and power the trucks that deliver the milk,’ says ABC executive director Patrick Serfass. ‘Without it, that farmer may not be able to make that investment. Indeed, the credit would also facilitate the conversion of food waste to biogas that can be injected into natural gas pipelines.’
Biogas projects that generate electricity are eligible for a production tax credit under Section 45 of the federal tax code, but currently no comparable tax incentive exists for the production of biogas when used for purposes other than electricity generation.
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