The introduction of a tax credit bill which would provide a 30% investment tax credit (ITC) for qualifying biogas technologies in the U.S. has been welcomed by the American Biogas Council (ABC).
The proposed Biogas Investment Tax Credit Act of 2013 (HR 860) by Representatives Ron Kind and John Lewis would add biogas to the list of renewables that already receive a 30% federal investment tax credit.
According to the 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.
The ABC explained that 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.
"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."
"Indeed, the ITC would also facilitate the conversion of food waste to biogas that can be injected into natural gas pipelines," continued Serfass.
The ABC said that during turbulent times in Congress, the introduction of HR 860 reflects the importance that biogas can play in the nation's energy mix.
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