Congresswoman Hillary Scholten (D-MI) and Congressman David Valadao (R-CA) have introduced the Agricultural Environmental Stewardship Act of 2025, a bipartisan effort to extend the Section 48 ITC (investment tax credit) for qualified biogas properties.

The Inflation Reduction Act (IRA) previously extended the ITC to include biogas technologies, but the credit is set to expire on December 31, 2024. Adding to the urgency, the Department of Treasury released its final rulemaking on the credit only 27 days before the deadline, leaving limited time for stakeholders to act under clear regulatory guidance.

Supporting Clean Energy and Rural Economies

The legislation is designed to:

• Boost clean energy production: Extending the ITC provides much-needed certainty for biogas producers, enabling significant investments in renewable energy infrastructure.
• Support rural communities: Biogas projects often create jobs and foster economic development in rural areas, tying environmental progress to local prosperity.
• Reduce greenhouse gas emissions: Biogas production promotes sustainable agricultural practices and helps mitigate the environmental impact of agricultural waste.

Rep. Scholten stressed the importance of the extension, stating:

“Extending the Sec. 48 ITC is common sense. If we want to secure America’s green future, we must ensure that producers have the clarity necessary to make critical investments in biogas.”

Rep. Valadao echoed the sentiment, adding:

“This bipartisan legislation will support rural economies, protect our environment, and boost domestic clean energy production. I urge my colleagues to support this important measure.”

Key Features of the Section 48 ITC

The Section 48 ITC incentivizes investment in renewable energy technologies by providing tax credits to qualifying projects. The IRA expanded eligibility to include biogas properties, a move that has been pivotal for the clean energy sector.

Legislative Path Forward

The Agricultural Environmental Stewardship Act of 2025 has been submitted to the House Committee on Ways and Means for consideration. Advocates of the bill emphasize the importance of swift action to ensure continuity in renewable energy investments and job creation.

Paving the Way for a Greener Future

This proposed extension highlights a broader commitment to sustainable energy policy, addressing both environmental and economic challenges. By providing long-term regulatory stability, the legislation aims to accelerate clean energy adoption and strengthen the nation’s renewable energy infrastructure.

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