To amend the Internal Revenue Code of 1986 to extend the energy credit for qualified biogas property.
Sponsors
Legislative Progress
IntroducedMs. Scholten (for herself and Mr. Valadao) introduced the following …
Summary
What This Bill Does
The Agricultural Environmental Stewardship Act of 2025 extends a tax credit for biogas energy facilities by one year. Currently, businesses building qualified biogas property must start construction by December 31, 2024 to qualify for the energy tax credit under Section 48 of the Internal Revenue Code. This bill pushes that deadline to December 31, 2025, giving developers an additional year to begin construction and still receive the credit.
Who Benefits and How
Biogas facility operators and developers benefit most directly. They gain an extra year to start construction on projects and still qualify for valuable federal tax credits that reduce the upfront cost of building these facilities. Agricultural operations, particularly dairy and livestock farms, benefit by having more time to install anaerobic digesters that convert animal waste into renewable energy while reducing environmental impacts. These systems can cost millions of dollars, and the tax credit makes them financially viable. Waste management companies also benefit by having more time to develop facilities that turn organic waste into biogas energy, creating a new revenue stream while solving waste disposal challenges.
Who Bears the Burden and How
Federal taxpayers bear the primary burden through reduced tax revenue. Each biogas facility that qualifies for the credit under the extended deadline reduces federal tax collections. The Treasury Department will also need to administer this extension, though the administrative burden is minimal since it simply extends an existing credit rather than creating a new program.
Key Provisions
- Extends the energy tax credit deadline for qualified biogas property from December 31, 2024 to December 31, 2025
- Applies to property where construction begins after December 31, 2024
- Amends Section 48(c)(7)(C) of the Internal Revenue Code of 1986
- Maintains all other requirements and terms of the existing biogas energy credit
- Effective immediately upon enactment
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Extends the energy tax credit for qualified biogas property by one year, from December 31, 2024 to December 31, 2025.
Policy Domains
Legislative Strategy
"Simple one-year extension to maintain tax incentives for biogas energy production, likely intended to provide continuity for the renewable energy sector while broader energy policy is debated"
Likely Beneficiaries
- Biogas facility operators and developers
- Agricultural operations with anaerobic digesters
- Renewable energy investors
- Waste management companies converting organic waste to energy
- Dairy and livestock farms with biogas systems
Likely Burden Bearers
- Federal taxpayers (through reduced tax revenue)
- Treasury Department (administrative implementation)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury (implicitly, via IRC administration)
Key Definitions
Terms defined in this bill
Property eligible for energy credit under Internal Revenue Code Section 48(c)(7), which pertains to biogas facilities that convert organic waste into renewable energy
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology