Reps. Hillary Scholten, D-Mich., and David Valadao, R-Calif., introduced the Agricultural Environmental Stewardship Act of 2025 to extend the Section 48 investment tax credit (ITC) for qualified biogas properties. The Inflation Reduction Act (IRA; P.L. 117-169) extended the Sec. 48 ITC through December 31, 2024, to support the deployment of certain clean energy technologies. However, the Department of Treasury’s final rulemaking was not released until December 4, 2024–27 days before the expiration of the tax credit.
To boost domestic clean energy production, the bipartisan Agricultural Environmental Stewardship Act of 2025 aims to extend the Sec. 48 ITC for qualified biogas properties through December 31, 2025. This will empower innovative biogas producers to make major clean energy investments with the regulatory certainty provided through the Treasury’s final rulemaking. This bipartisan effort will catalyze our nation’s clean and alternative fuel production from landfills, wastewater treatment plants, diverted food waste, and agricultural operations to slash greenhouse gas emissions and save consumers money.
“Extending the Sec. 48 ITC is common sense,” said Scholten. “If we want to secure America’s green future, we must ensure that producers have the clarity necessary to make critical investments in biogas. My bill would put West Michigan’s agricultural community at the forefront of the clean energy transition while cutting harmful greenhouse gas emissions and lowering costs for families across the country. I’m glad to work with my California colleague, Rep. Valadao, to introduce solutions that support communities across the country.”
“Farmers in the Central Valley are already leading the way in turning agricultural waste into clean energy, and extending the Section 48 Investment Tax Credit will help them expand these efforts,” said Congressman Valadao. “These projects help diversify the energy grid, improve sustainability, and create new income opportunities, and I am proud to support legislation to provide stability for future investment in our region.”
Representatives Scholten and Valadao are pleased to have the support of the American Biogas Council and the Coalition for Renewable Natural Gas.
"The American Biogas Council applauds the leadership of Representatives Scholten and Valadao on this bipartisan effort to increase domestic energy production and support American farmers by extending the Section 48 investment tax credit (ITC) for qualified biogas property. Biogas is a versatile solution to America's growing energy demands, producing domestic energy from organic waste material to support both the electric and natural gas grids, while also producing home-grown fertilizers for American farmers. While the final guidance from the Treasury Department for Sec. 48 ITC was favorable for the biogas and renewable natural gas industries, the rule was published mere weeks before expiration at the end of 2024. Passing the Agricultural Environmental Stewardship Act of 2025will provide the industry with the market certainty necessary to unlock millions of dollars in private investment across rural America." - Patrick Serfass, executive director of the American Biogas Council
"RNG Coalition appreciates the leadership of Reps. Scholten and Valadao in introducing the Sec. 48 extension. If enacted, this effort would provide critical investment certainty for RNG developers, fostering job growth and economic impact in the rapidly growing U.S. alternative fuels industry." - Geoff Dietz, executive director of the Coalition for Renewable Natural Gas
