Kind introduces bill to provide tax incentive for biogas projects

By Erin Voegele | June 21, 2021

Reps. Ron Kind, D-Wisc., and Tom Reed, R-N.Y., on June 16 reintroduced the Agricultural Environmental Stewardship Act, which aims to provide tax incentives to farmers and rural electric cooperatives who invest in biogas technology.

The legislation would promote investment by allowing biodigesters to qualify for a 30 percent investment tax credit. Qualifying projects would include digesters or other biological, chemical, thermal or mechanical processes to make biogas that is at least 52 percent methane.

Several versions of the bill have been introduced over the past several years. Provisions of the Agricultural Environmental Stewardship Act have also been included in the comprehensive Growing Renewable Energy and Efficiency Now (GREEN) Act, introduced earlier this year.

The American Biogas Council has spoken out in support of the bill, noting its introduction reflects a critical need too support economically and environmentally sustainable agricultural practices that protect waterways and enrich soils. According to the ABC, no tax incentives currently exist to incentivize biogas systems that produce renewable natural gas (RNG) or any nutrient recovery systems.  

 “At a time when we need to strengthen U.S. agriculture, promote more sustainable practices and make healthier soils, the Agricultural Environmental Stewardship Act is exactly what we need,” said Patrick Serfass, executive director of the ABC. “The ABC is very grateful for the continued support of Congressmen Kind and Reed. We believe this bill will encourage greater investment in biogas systems and nutrient recovery technologies which will create new jobs, promote sustainable farm practices, and provide additional revenue streams for farmers."