S.1252 - Renewable Natural Gas Incentive Act of 2025 (119th Congress)
Summary
The Renewable Natural Gas Incentive Act of 2025 (S.1252) aims to promote the use of renewable natural gas (RNG) by amending the Internal Revenue Code of 1986. The bill introduces a tax credit of $1.00 per gallon of RNG used as fuel in motor vehicles, motorboats, or aviation. It defines RNG as compressed or liquefied gas derived from biomass and sets requirements for its production, blending, and certification.
Expected Effects
The Act is likely to increase the production and consumption of RNG by providing a financial incentive. This could lead to a reduction in greenhouse gas emissions and improved air quality. The bill also aims to stimulate job creation and economic opportunities within the renewable energy sector.
Potential Benefits
- Increased use of renewable natural gas as a transportation fuel.
- Reduction in greenhouse gas emissions and improved air quality.
- Creation of jobs in the renewable energy sector.
- Economic opportunities for businesses involved in RNG production and distribution.
- Potential for greater energy independence by utilizing domestically produced renewable resources.
Potential Disadvantages
- Potential for increased costs to taxpayers through the tax credit mechanism.
- Possible administrative burden for businesses to comply with the certification and registration requirements.
- Risk of fraud or abuse in claiming the tax credit.
- Potential for unintended consequences related to land use and biomass sourcing.
- The credit is set to terminate after December 31, 2035, creating uncertainty for long-term investments.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble) by promoting policies intended to benefit the environment and economy. Congress has the power to lay and collect taxes, duties, imposts, and excises (Article I, Section 8), which includes the authority to create tax credits and incentives. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).