# Plain Language Summary: Renewable Natural Gas Incentive Act of 2022

This bill creates a new tax credit to encourage the use of renewable natural gas as a fuel for vehicles, boats, and planes. Renewable natural gas is essentially methane gas produced from organic waste like manure, food scraps, and sewage—materials that would otherwise decompose in landfills or be treated as waste. The bill offers a $1.00 tax credit for every gallon of renewable natural gas used or sold as fuel, which means businesses and individuals who produce or use this fuel can get money back from the government to offset their costs.

The credit applies to renewable natural gas that's been compressed or liquefied and comes from registered producers. If a company blends renewable natural gas with regular natural gas, they can still claim the credit for the renewable portion as long as they have a contract with the producer beforehand. The fuel must be produced in the United States to qualify for the credit, and the credit only applies to fuel used domestically. The bill also requires producers of renewable natural gas to register with the government, similar to how other fuel producers already do.

This incentive is designed to make renewable natural gas more competitive with traditional fossil fuels by reducing the cost difference. The goal is to encourage companies to invest in capturing and converting waste gases into usable fuel, which would reduce greenhouse gas emissions, improve air quality, and create jobs in the renewable energy sector. The tax credit expires on December 31, 2032, meaning it will only be available for the next decade unless Congress extends it. Businesses that sell renewable natural gas can claim the credit on their taxes, and the government will pay out the credits directly to qualifying producers and sellers.

Renewable Natural Gas Incentive Act of 2022

Sánchez, Linda T.

Renewable Natural Gas Incentive Act of 2022 This bill allows a tax credit through 2032 equal to $1 times the number of gallons of renewable natural gas or gasoline gallon equivalent of nonliquid renewable natural gas for use as a fuel in a motor vehicle or motorboat or for use as a fuel in aviation.