Manure bill offers tax credit for compressed natural gas

Congress is taking a closer look at manure as it considers a bill that would expand tax credits to additional biogas applications.

The current 30 percent tax credit under the federal Section 45 Investment Tax Credit (ITC) applies only to biogas-based electricity projects, according to Bion Environmental Technologies, a provider of advanced livestock waste treatment technology.

If passed, House Bill 5489 would allow other biogas applications, such as compressed natural gas (CNG), to qualify for the ITC.

“The primary reason that wide-scale implementation of manure-control technologies, such as Bion’s, has not occurred already, is that sufficient funding sources to offset technology adoption cost have not been available,” said Craig Scott, director of Bion’s director of communications.

“The federal investment tax credit has been used historically as a tool to reduce risk and stimulate investment in certain evolving sectors, such as the renewable energy sectors, and can be used to help bridge that gap.”

According to, a summary for HB 5489 states that the legislation “would amend the Internal Revenue Code of 1986 to make qualified biogas property and qualified manure resource recovery property eligible for the energy credit and to permit new clean renewable energy bonds to finance qualified biogas property, and for other purposes.”

The bi-partisan bill is currently being debated by the U.S. House Ways and Means Committee on Space, Science and Technology. A similar bill has been introduced in the Senate.

The Agriculture Environmental Stewardship Act was introduced by Reps. Tom Reed, R-N.Y., and Ron Kind, D-Wis., and co-sponsored by Reps. Bob Gibbs, R-Ohio; John Moolenaar, R-Mich.; Dan Newhouse, R-Wash.; Reid Ribble, R-Wis.; Elise Stefanik, R-N.Y.; Mike Simpson, R-Idaho; David Valadao, R-Calif.; Joe Courtney, D-Conn.; Suzan DelBene, D-Wash.; Mark Pocan, D-Wis.; Tim Walz, D-Minn.; and Peter Welch, D-Vt.

View HR Bill 5489 in its entirety at