II 

113TH CONGRESS 

2D SESSION S. 2739 

To amend the Internal Revenue Code of 1986 to make qualified biogas 

property eligible for the energy credit and to permit new clean renewable 

energy bonds to finance qualified biogas property. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2014 

Mr. SCHUMER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

qualified biogas property eligible for the energy credit 

and to permit new clean renewable energy bonds to finance qualified biogas property. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biogas Investment Tax 

5 Credit Act of 2014’’. 

6 SEC. 2. INCENTIVES FOR QUALIFIED BIOGAS PROPERTY. 

7 (a) INCENTIVES FOR QUALIFIED BIOGAS PROPERTY

8 MADE ELIGIBLE FOR THE ENERGY CREDIT.— 


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1 (1) IN GENERAL.—Subparagraph (A) of section 

2 48(a)(3) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘or’’ at the end of clause (vi), 

4 by inserting ‘‘or’’ at the end of clause (vii), and by 

5 adding at the end the following new clause: 

6 ‘‘(viii) qualified biogas property,’’. 

7 (2) QUALIFIED BIOGAS PROPERTY.—Subsection 

8 (c) of section 48 of such Code is amended by adding 

9 at the end the following new paragraph: 

10 ‘‘(5) QUALIFIED BIOGAS PROPERTY.— 

11 ‘‘(A) IN GENERAL.—The term ‘qualified 

12 biogas property’ means property comprising a 

13 system which— 

14 ‘‘(i) uses anaerobic digesters or other 

15 biological, chemical, thermal, or mechanical 

16 processes (alone or in combination) to con17 vert biomass (as defined in section 

18 45K(c)(3)) into a gas which consists of not 

19 less than 52 percent methane, and 

20 ‘‘(ii) captures such gas for use as a 

21 fuel. 

22 ‘‘(B) INCLUSION OF CERTAIN CLEANING

23 AND CONDITIONING EQUIPMENT.—Such term 

24 shall include any property which cleans and 


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1 conditions the gas referred to in subparagraph 

2 (A) for use as a fuel. 

3 ‘‘(C) TERMINATION.—No credit shall be 

4 determined under this section with respect to 

5 any qualified biogas property for any period 

6 after December 31, 2019.’’. 

7 (3) QUALIFIED BIOGAS PROPERTY MADE ELIGI8 BLE FOR 30 PERCENT CREDIT.—Clause (i) of section 

9 48(a)(2)(A) of such Code is amended by striking 

10 ‘‘and’’ at the end of subclause (III) and by adding 

11 at the end the following new subclause: 

12 ‘‘(V) qualified biogas property, 

13 and’’. 

14 (4) DENIAL OF DOUBLE BENEFIT.—Subsection 

15 (e) of section 45 of such Code is amended by adding 

16 at the end the following new paragraph: 

17 ‘‘(12) COORDINATION WITH ENERGY CREDIT

18 FOR QUALIFIED BIOGAS PROPERTY.—The term 

19 ‘qualified facility’ shall not include any facility which 

20 produces electricity from gas produced by qualified 

21 biogas property (as defined in section 48(c)(5)) if a 

22 credit is determined under section 48 with respect to 

23 such property for the taxable year or any prior tax24 able year.’’. 


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1 (5) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to periods after De3 cember 31, 2013, in taxable years ending after such 

4 date, under rules similar to the rules of section 

5 48(m) of the Internal Revenue Code of 1986 (as in 

6 effect on the day before the date of the enactment 

7 of the Revenue Reconciliation Act of 1990). 

8 (b) QUALIFIED BIOGAS PROPERTY MADE ELIGIBLE

9 FOR FINANCING WITH NEW CLEAN RENEWABLE ENERGY

10 BONDS.— 

11 (1) IN GENERAL.—Paragraph (1) of section 

12 54C(d) of the Internal Revenue Code of 1986 is 

13 amended by inserting ‘‘, or a qualified biogas prop14 erty (as defined in section 48(c)(5)),’’ before ‘‘owned 

15 by’’. 

16 (2) EFFECTIVE DATE.—The amendment made 

17 by this subsection shall apply to obligations issued 

18 after the date of the enactment of this Act. 

19 (c) STUDY OF BIOGAS.—The Secretary of the Treas20 ury shall enter into an agreement with the National Re21 newable Energy Laboratory to undertake a study of 

22 biogas. Such agreement shall provide for a written report 

23 to be submitted to Congress not later than 2 years after 

24 the date of the enactment of this Act. Such report shall 

25 address the following issues: 


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1 (1) The quality of biogas, including a compari2 son of biogas to natural gas and the identification 

3 of any components of biogas which make it unsuit4 able for injection into existing natural gas pipelines. 

5 (2) Methods for obtaining the highest energy 

6 content in biogas, including the use of co-digestion 

7 and identifying the optimal feed mixture. 

8 (3) Recommendations for the expansion of 

9 biogas production, including an analysis of the ex10 tent to which increasing the methane content of 

11 biogas would result in its greater use and an anal12 ysis of how the expanded use of biogas could help 

13 meet the growing energy needs of the United States. 

Æ 


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