In a rare show of political harmony, Democrats and Republicans are backing natural gas tax credits worth $0.50 per gallon equivalent. This bipartisan package includes excise credits and refundable income tax credits for both compressed and liquefied natural gas. Companies must begin construction by 2024 to qualify for the 30% ITC. Tax-exempt entities get rebates instead. The credits expire December 2024, with potential extensions on the horizon. Green initiatives can apparently make strange bedfellows.
Money talks, especially when it comes to environmental initiatives. The latest evidence? A rare show of bipartisan support for natural gas tax credits. Democrats and Republicans are actually agreeing on something, and it involves both money and reducing emissions. Shocking, right?
The extensive package includes excise credits, refundable income tax credits, and rebates for qualifying entities. At the center is a $0.50 per gallon equivalent credit for alternative fuels including natural gas and propane. Not too shabby for businesses looking to go greener without breaking the bank.
Tax credits just turned going green into a money-saving opportunity. $0.50 per gallon to help the planet? Business-friendly environmentalism at its finest.
The Investment Tax Credit (ITC) offers a substantial 30% of qualifying expenses for construction projects. There’s a catch though – they need to meet prevailing wage and apprenticeship requirements. Politics as usual, even in tax credits.
Companies looking to cash in need to move quickly. Safe harbor provisions extend eligibility, but projects must begin construction by 2024. The clock is ticking.
Starting in 2025, tech-neutral tax incentives kick in for zero-emission electricity projects. Most current RNG facilities won’t qualify. Tough luck for latecomers.
The Alternative Fuel Excise Tax Credit doesn’t discriminate, applying to compressed natural gas and liquefied natural gas alike. It’s set to expire December 31, 2024. Congress will probably extend it at the last minute, as they do with everything.
Some lawmakers are pushing for more. A proposed $1.00 per gallon tax credit for RNG fuel would double current incentives. Fleet operators are salivating at the prospect.
These credits aren’t just financial handouts. They drive methane capture from landfills and promote anaerobic digestion projects. Environmental benefits with economic incentives. Who would’ve thought?
Tax-exempt entities aren’t left out either. They get rebates instead of direct tax credits. Everyone gets a piece of the pie. Key sponsors including Senators Tillis and Warner have introduced the bill simultaneously in both chambers of Congress to expedite passage.
The bottom line? These credits make going green less painful for businesses. Politicians get environmental talking points. Companies save money. Mother Nature breathes easier. Unlike geothermal energy with its 96% capacity factor, natural gas still faces intermittency challenges. RNG constitutes nearly 10% of the market for clean energy tax credits, showing significant industry adoption. Sometimes government actually works. Almost makes you believe in the system. Almost.
