This bill gives farms and businesses an extra year to take advantage of a tax credit if they invest in biogas equipment. Biogas systems convert animal waste and other organic materials into methane gas, which can then be sold or used to generate electricity and heat. Right now, businesses have until the end of 2024 to start building these systems and claim a tax credit on their investment. This bill pushes that deadline back to the end of 2025, giving farmers and companies more time to plan and install biogas projects while still getting the tax break. Essentially, if you're thinking about investing in biogas technology to make your farm or facility more sustainable and profitable, you now have an extra 12 months to get started and qualify for the tax credit that helps offset your costs.

Agricultural Environmental Stewardship Act of 2025

Scholten, Hillary J.

Agricultural Environmental Stewardship Act of 2025This bill extends for one year the energy investment tax credit for qualified biogas property (property that converts biomass into methane and captures the gas for sale or productive use).Under the bill, the energy investment tax credit (as part of the general business tax credit) is allowed for investments in qualified biogas property for which construction begins on or before December 31, 2025. (Under current law, to qualify for the tax credit, construction of qualified biogas property must begin on or before December 31, 2024.)