Renewable Natural Gas Incentive Act of 2023

The Renewable Natural Gas Incentive Act of 2023 creates a $1.00 federal tax credit per gallon for renewable natural gas (RNG) used as fuel in vehicles, boats, or aircraft. This credit applies to producers and users of RNG derived from biomass, requiring producers to register with the IRS and provide certification for each sale. Blended RNG (mixed with regular natural gas) can qualify only if accompanied by a prior contract specifying the RNG amount and producer certification. The credit expires December 31, 2033, and does not apply to RNG produced or used outside the United States.