Renewable Natural Gas Incentive Act of 2025
Sponsored By: Senator Tillis, Thomas [R-NC]
Introduced
Summary
Creates a $1-per-gallon renewable natural gas fuel tax credit that would apply to RNG sold or used as motor vehicle, motorboat, or aviation fuel. It ties eligibility to producer registration and certification and ends after December 31, 2035.
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- RNG producers must register and provide certification to make their gas eligible, which determines how many gallons count toward the credit.
- Sellers or business users of RNG could receive a payment from the Treasury equal to the credit amount for RNG used in their trade or business, with payments made without interest.
- Blended fuels count only for the contracted and certified gallons in a preexisting contract that specifies quantity and period, and the credit is not available for RNG produced or used entirely outside the United States.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
New $1-per-Gallon Renewable Natural Gas Credit
This bill would create a $1.00-per-gallon federal credit for renewable natural gas (RNG) sold or used as vehicle, boat, or aviation fuel. Producers would need to register under section 4101(a) and give a Secretary-prescribed certification of gallons. The Treasury would pay sellers or users directly, without interest. Blended fuels would count only for contract-certified gallons with producer certification. No credit would apply to RNG produced and used entirely outside the United States. The credit would not apply to sales or uses after December 31, 2035. It would start for fuel sold or used in calendar quarters after the date of enactment.
Sponsors & CoSponsors
Sponsor
Tillis, Thomas [R-NC]
NC • R
Cosponsors
Sen. Coons, Christopher A. [D-DE]
DE • D
Sponsored 9/30/2026
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 4/2/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov