Legislation Pushes Tax Credit for RNG Conversion

A House bill would give transportation companies a tax credit for switching from diesel-powered vehicles to those running on renewable natural gas (RNG).

The Renewable Natural Gas Incentive Act of 2022 — which was introduced Dec. 1 — would amend the tax code to give a $1-per-gallon tax credit to fleet owners that sell or use RNG, or some RNG blends, for commercial transportation purposes, according to the legislation.

The bipartisan bill, which was introduced by Reps. Brian Fitzpatrick (R-Penn.) and Linda Sánchez (D-Calif.), is identical to a Senate bill introduced in July by Sens. Richard Burr (R-N.C.) and Mark Warner (D-Va.).

Under both bills, the tax credit would expire in 2033.

“Renewable natural gas … provides economical and clean energy that can offer carbon-negative fuel for some of our nation’s largest supply chain vehicles,” Fitzpatrick said in a release. “Providing businesses with tax credits for RNG will boost our economy and safeguard our environment.”

“With this credit, transit agencies, school districts, freight haulers, and package delivery companies can invest in cleaner energy and replace aging fleets without slowing production or increasing costs,” Sánchez stated in her companion release.