Congress extends farm biogas tax credit for one more year
H.R. 536 — Agricultural Environmental Stewardship Act of 2025 · Filed by Hillary Scholten (D-MI) · 3 cosponsors · Introduced Jan 16, 2025 · Referred to committee
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What it does
This bill extends a federal tax credit for biogas energy systems by one year, from December 31, 2024 to December 31, 2025. Farmers and other property owners who build biogas digesters (systems that capture methane from agricultural waste and convert it to energy) can claim a tax credit on their federal income taxes if construction begins after December 31, 2024. The extension allows more projects to qualify for the credit before it expires.
Why we flagged it
The bill's sole operative mechanism is a one-year extension of an existing federal tax credit for biogas energy property. It is a routine tax-code amendment with no broader policy innovation or structural change.
What the text implies
- The one-year extension creates a cliff: projects must begin construction by Dec 31, 2025 to qualify, potentially concentrating investment activity in late 2025 and creating uncertainty for long-term biogas infrastructure planning.
- The credit's value depends on the underlying IRC 48(c)(7)(C) provision, which the bill does not restate; the actual credit amount, eligible property types, and phase-out rules remain in the existing statute and are not visible in this amendment.
The full analysis lists 3 implications of this text.
Who stands to gain
agricultural operators and farmers with biogas projects; biogas equipment manufacturers and installers; renewable energy developers in the agricultural sector