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ABC applauds introduction of biogas tax credit

March 15, 2013  by Press release

March 11, 2013, Washington, DC – The American Biogas Council (ABC) applauds the introduction of the Biogas Investment Tax Credit Act of 2013 (HR 860), which would provide a 30 percent investment tax credit (ITC) for qualifying biogas technologies.

This bill would add biogas to the list of renewables that already receive a 30 percent federal investment tax credit.

According to ABC executive director Patrick Serfass, projects that inject renewable natural gas into the gas pipeline or use the biogas to power vehicle fleets would benefit from the credit.

“This tax credit will help a dairy farmer who makes biogas from cow manure and then uses it to heat the buildings and power the trucks that deliver the milk,” Serfass said.


“Without it, the farmer may not be able to make that investment,” he continued. “Indeed, the ITC would also facilitate the conversion of food waste to biogas that can be injected into natural gas pipelines.”

While biogas projects that generate electricity are eligible for a production tax credit under Section 45 of the federal tax code, currently no comparable tax incentive exists for the production of biogas when used for purposes other than electricity generation.


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