Renewable Natural Gas Incentive Act of 2025

HR 2596 creates a $1.00 per gallon tax credit for renewable natural gas (RNG) used as transportation fuel in vehicles, boats, or aircraft. The credit applies to producers and businesses that sell or use RNG meeting specific requirements, including registration under existing rules and producer certification. RNG must be derived from biomass and produced within the U.S., with blended fuel treated as RNG only under strict contractual and certification conditions. The credit expires for sales or uses after December 31, 2035, and applies to fuel sold or used after December 31, 2025.