The U.S. Department of Treasury on Dec. 4 released final rules for the Section 48 Energy Credit—also known as the investment tax credit (ITC). The rules clarify what property is qualified biogas property and what is an integral part of qualified biogas property.&nbsp;Treasury and the Internal Revenue Service in November 2023 issued a notice of proposed rulemaking (NPRM) proposing changes to the Section 48 regulations implemented by the Inflation Reduction Act. That NPRM was criticized by the biogas industry for proposing to exclude cleaning and conditional equipment integral to processing biogas into renewable natural gas (RNG). The agencies in February 2024 <a href="https://biomassmagazine.com/articles/rng-coalition-irs-issues-technical-correction-to-sec-48-itc-proposal">issued a technical correction</a> making it clear that such equipment would be eligible for the ITC.&nbsp;&nbsp;The final rule specifies that “qualified biogas property also includes any property that is part of such system that cleans or conditions such gas, including gas upgrading equipment, to make the gas suitable for sale or productive use.”The Coalition for Renewable Natural Gas (RNG Coalition) said the updated regulations represent a significant step forward for the biogas and RNG industries, ensuring wider project eligibility for the ITC.&nbsp;“RNG Coalition commends the Treasury Department’s issuance of the Sec. 48 investment tax credit (ITC) rule," said Geoffrey Dietz, director of federal affairs at the RNG Coalition. "The final rulemaking reflects the intent of Congress to broadly incentivize the beneficial use of biogas, including as RNG, further to the Inflation Reduction Act’s goals of accelerating decarbonization and clean energy deployment."We look forward to continued discussion with members of Congress and the incoming Trump-Vance administration on the role of RNG development, deployment, and utilization in advancing both America’s global energy leadership and private sector-led clean energy investment in communities across the country.”The American Biogas Council is also applauding the regulations. “We thank the Treasury Department for creating sensible rules that reflect the realities of how biogas systems are built," said Patrick Serfass, executive director of the ABC. "These rules will give biogas developers certainty on the eligibility of their project investments for tax credits available to clean energy projects.“The final rules are aligned with the intent of lawmakers as put forth in the Inflation Reduction Act of 2022 (IRA), and they will help biogas businesses provide more domestic, renewable energy while providing economic benefits to communities across America.“We look forward to working with the new Congress and the Trump administration on preserving these valuable tax incentives," Serfass added.&nbsp;Additional information is available on the Treasury <a href="https://home.treasury.gov/news/press-releases/jy2736">website</a>.&nbsp;&nbsp;

2024-12-05 - Treasury issues final rule for Section 48 Energy Credit (Biomass Magazine)

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The U.S. Department of Treasury on Dec. 4 released final rules for the Section 48 Energy Credit—also known as the ITC. The rules clarify what property is qualified biogas property and what is an integral part of qualified biogas property. 

Treasury issues final rule for Section 48 Energy Credit

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