Agricultural Environmental Stewardship Act of 2025
Agricultural Environmental Stewardship Act of 2025
Plain Language Summary
# Agricultural Environmental Stewardship Act of 2025 - Summary **What the bill does:** This bill extends a federal tax credit for one additional year (through 2025) that helps businesses invest in biogas equipment. Biogas systems convert agricultural waste and other organic materials into methane gas, which can be used as energy or sold. Currently, companies must begin construction on these projects by December 31, 2024 to claim the tax credit; this bill would push that deadline to December 31, 2025, giving businesses more time to start their projects and claim the financial incentive. **Who it affects:** The bill primarily benefits farmers, agricultural companies, and waste management businesses that want to install biogas systems.
It also indirectly affects taxpayers, since tax credits reduce government revenue. The extension could encourage more renewable energy projects in rural areas and help reduce methane emissions from agricultural waste. **Current status:** The bill is in committee (HR 536), meaning it's still in the early stages of the legislative process and hasn't yet been debated or voted on by the full House of Representatives. It was introduced by Representative Hillary Scholten, a Democrat from Michigan.
CRS Official Summary
Agricultural Environmental Stewardship Act of 2025This bill extends for one year the energy investment tax credit for qualified biogas property (property that converts biomass into methane and captures the gas for sale or productive use).Under the bill, the energy investment tax credit (as part of the general business tax credit) is allowed for investments in qualified biogas property for which construction begins on or before December 31, 2025. (Under current law, to qualify for the tax credit, construction of qualified biogas property must begin on or before December 31, 2024.)
Latest Action
Referred to the House Committee on Ways and Means.