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119-hr-2596119th CongressWALLET

Renewable Natural Gas Incentive Act of 2025

Sponsored By: Representative Fitzpatrick, Brian K. [R-PA-1]

Introduced

Summary

Creates a $1-per-gallon federal credit for Renewable Natural Gas (RNG) used or sold as fuel. This credit would apply to RNG used in motor vehicles, motorboats, or aviation and can cover blended RNG when contracts and producer certifications meet the bill's rules.

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  • Producers: Registered RNG producers would have to register under the tax code and provide certifications that identify the product and the gallon equivalents to make sales eligible for the credit.
  • Sellers and users: Businesses that sell or use RNG in a trade or business could claim $1 per gallon or gasoline gallon equivalent for qualifying fuel sold or used for driving, boating, or aviation. Blended RNG can qualify when a preexisting contract and producer certification back the RNG amount.
  • Administration and timing: The Treasury would pay the credit without interest to sellers or users who qualify. The credit would apply to fuel sold or used after December 31, 2025 and would not apply after December 31, 2035.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

$1-per-gallon credit for renewable natural gas

If enacted, businesses that sell or use renewable natural gas as fuel would get $1.00 per gallon. This would cover fuel for motor vehicles, motorboats, or aviation. You could also choose a direct cash payment from the IRS instead of a tax credit, paid without interest. To qualify, the gas must come from biomass, and the producer must be registered and provide a certification. It would apply to fuel sold or used after December 31, 2025, and would end after December 31, 2035.

Rules to qualify for renewable gas credit

If enacted, producers would need to register and provide certifications for their renewable natural gas. The gas must be compressed or liquefied and derived from biomass. Some blended gas could count if you have a pre-existing contract that lists gallons and dates, and the producer certifies it. Only the certified gallons can be treated as renewable gas for the period. No double benefits would be allowed, and no credit would apply to fuel produced and used outside the United States. For nonliquid gas, one gasoline-gallon equivalent equals fuel with 124,800 Btu. These rules would apply for fuel sold or used after December 31, 2025, and end after December 31, 2035.

Sponsors & CoSponsors

Sponsor

Fitzpatrick, Brian K. [R-PA-1]

PA • R

Cosponsors

  • Rep. Van Orden, Derrick [R-WI-3]

    WI • R

    Sponsored 9/28/2026

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 4/2/2025

  • Rep. Costa, Jim [D-CA-21]

    CA • D

    Sponsored 4/9/2025

  • Rep. Garbarino, Andrew R. [R-NY-2]

    NY • R

    Sponsored 4/10/2025

  • Rep. Langworthy, Nicholas A. [R-NY-23]

    NY • R

    Sponsored 5/7/2025

  • Rep. Garamendi, John [D-CA-8]

    CA • D

    Sponsored 10/10/2025

  • Rep. Carbajal, Salud O. [D-CA-24]

    CA • D

    Sponsored 5/29/2026

  • Rep. Budzinski, Nikki [D-IL-13]

    IL • D

    Sponsored 6/2/2026

  • Rep. LaHood, Darin [R-IL-16]

    IL • R

    Sponsored 7/14/2026

  • Rep. Feenstra, Randy [R-IA-4]

    IA • R

    Sponsored 9/21/2026

Roll Call Votes

No roll call votes available for this bill.

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