Bipartisan lawmakers push new natural gas tax credit

By Amelia Davidson | 04/08/2025 06:39 AM EDT

The legislation would give a $1-per-gallon credit to those who sell natural gas made from organic components.

Sen. Mark Warner (D-Va.) speaks during a press conference.

Sen. Mark Warner (D-Va.) is co-sponsoring legislation to create a new tax incentive for renewable natural gas. Francis Chung/POLITICO

A bipartisan group of lawmakers has introduced legislation to incentivize the use of renewable natural gas for transportation purposes.

The proposal would create a $1-per-gallon tax credit for those who sell renewable natural gas (RNG) for motor vehicles, boats or planes. RNG is natural gas that is produced using organic material from locations such as landfills, wastewater treatment plants and livestock farms.

Sens. Thom Tillis (R-N.C.) and Mark Warner (D-Va.) introduced the bill, called the “Renewable Natural Gas Incentive Act,” in the Senate. Reps. Brian Fitzpatrick (R-Pa.) and Linda Sánchez (D-Calif.) are leading a House companion.

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Fitzpatrick — one of the most active congressional Republicans on environmental issues — called RNG “one of the most promising” steps toward American energy independence. Advocates for the fuel say it is a way to up domestic energy production and create jobs, while also lowering fossil fuel emissions.

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