Reps. Brian Fitzpatrick, R-Pa., and Linda Sanchez, D-Calif., and Sens. Thom Tillis, R-N.C., and Mark Warner, D-Va., on April 2 reintroduced legislation that aims to create a $1-per-gallon tax credit for renewable natural gas (RNG) sold for use as transportation fuel.
The bill, known as the Renewable Natural Gas Incentive Act of 2025, or S. 1252, was introduced in the Senate by Tillis and referred to the Committee on Finance. The House version of the bill, H.R. 2596, was introduced by Fitzpatrick and referred to the House Ways and Means Committee.
Previous versions of the House bill were introduced by Sanchez and Fitzpatrick in 2022 and 2023. Warner and Tillis also introduced a previous version of the bill in 2024.
According to the bill text, the $1 tax credit would be available for compressed or liquefied RNG derived from biomass. The tax credit would apply to RNG used for fuel in motor vehicles, motorboats or aviation that is sold or used between Dec. 31, 2025 and Dec. 31, 2035.
“Transitioning to RNG-fueled vehicles can save money and reduce emissions, and deploys new, affordable, cleaner, and compliant technology without delay and without compromising business operations,” said Daniel Gage, president of The Transport Project. “More and more commercial fleets are discovering how allocating RNG as transportation fuel can help achieve more sustainable results immediately. We are fortunate to have bipartisan, bicameral support in advancing the use of domestically produced RNG in commercial trucking; getting this credit passed in this Congress will promote energy security, American jobs, and fuel cost savings for businesses.”
