Bill > HR2596

This bill amends the Internal Revenue Code to create a new tax credit and payment system for renewable natural gas (RNG), which is compressed or liquefied gas derived from biomass. The bill provides a $1.00 credit per gallon of RNG sold for use in motor vehicles, motorboats, or aviation, with the credit available from January 1, 2026, through December 31, 2035. The legislation establishes detailed requirements for qualifying RNG, including production registration, certification of fuel origin and quantity, and restrictions on foreign-produced fuel. Blended RNG can also qualify under specific contractual conditions. The bill aims to promote increased use of renewable natural gas, reduce greenhouse gas and transportation-related emissions, and stimulate job creation and economic opportunities in the United States. Producers and sellers of RNG can claim the credit through a payment system administered by the Secretary of the Treasury, with provisions to prevent double-counting of credits and ensure the fuel is produced and used within the United States. The credit is designed to incentivize the production and use of a cleaner alternative fuel source that can help reduce carbon emissions in the transportation sector.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2596/all-info