‘‘SEC. 45Q. BIOGAS PRODUCED FROM CERTAIN RENEWABLE 
FEEDSTOCK. 
‘‘(a) AMOUNT OF CREDIT.—For purposes of section 
38, the qualified biogas production credit for any taxable 
year is an amount equal to the product of— 
‘‘(1) $4.27, and 
‘‘(2) 
each 
million 
British 
thermal 
units 
(mmBtu) of biogas— 
‘‘(A) produced by the taxpayer— 
‘‘(i) from qualified energy feedstock, 
and 
‘‘(ii) at a qualified facility during the 
7-year period beginning on the date the fa-
cility was originally placed in service, and 
‘‘(B)(i) sold by the taxpayer to an unre-
lated person during the taxable year, or 
‘‘(ii) used by the taxpayer as a fuel during 
the taxable year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) BIOGAS.—The term ‘biogas’ means a gas 
which— 
‘‘(A) is derived by processing a qualified 
energy feedstock, and 
‘‘(B) contains— 
‘‘(i) at least 60 percent methane, and 
‘‘(ii) carbon dioxide and trace gases. 
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‘‘(2) QUALIFIED ENERGY FEEDSTOCK.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy feedstock’ means— 
‘‘(i) manure of livestock (including 
any litter, wood shavings, straw, rice hulls, 
bedding material, and other materials inci-
dentally collected with the manure), 
‘‘(ii) any nonhazardous, organic agri-
cultural or food industry byproduct or 
waste material (cellulosic or otherwise) de-
rived from— 
‘‘(I) renewable biomass, 
‘‘(II) harvesting residue, 
‘‘(III) any waste or byproduct 
from fermentation processes, ethanol 
production, 
biodiesel 
production, 
slaughter of livestock, food produc-
tion, food processing, or food service, 
or 
‘‘(IV) other organic wastes, by-
products, or sources, 
‘‘(iii) solid wood waste materials, in-
cluding waste pallets, crates, dunnage, 
manufacturing 
and 
construction 
wood 
wastes, and tree trimmings, 
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‘‘(iv) agricultural or forestry crops, or 
‘‘(v) landfill waste, sewage waste 
treatment materials, or other decaying or-
ganic materials. 
‘‘(B) RENEWABLE
BIOMASS.—The term 
‘renewable biomass’ means materials from pre- 
commercial thinning or invasive species from 
National Forest System land and public lands 
(as defined in section 103 of the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 
1702)) that— 
‘‘(i) are byproducts of preventive 
treatments that are removed— 
‘‘(I) to reduce or contain disease 
or insect infestation, or 
‘‘(II) to restore ecosystem health, 
‘‘(ii) would not otherwise be used for 
higher-value products, and 
‘‘(iii) are harvested in accordance with 
applicable law and land management plans 
and the requirements for— 
‘‘(I) old-growth maintenance, res-
toration, and management direction of 
paragraphs (2), (3), and (4) of sub-
section (e) of section 102 of the 
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Healthy Forests Restoration Act of 
2003 (16 U.S.C. 6512), and 
‘‘(II) large tree retention of sub-
section (f) of that section, or 
‘‘(iv) any organic matter that is avail-
able on a renewable or recurring basis 
from non-Federal land or land belonging to 
an Indian or Indian tribe that is held in 
trust by the United States or subject to a 
restriction against alienation imposed by 
the United States, including— 
‘‘(I) renewable plant material 
(such as feed grains, other agricul-
tural commodities, other plants and 
trees, and algae), and 
‘‘(II) waste material (such as 
crop residue, other vegetative waste 
material (including wood waste and 
wood residues), animal waste and by-
products (including fats, oils, greases, 
and manure), food waste, and yard 
waste). 
‘‘(C) LIVESTOCK.—The term ‘livestock’ in-
cludes poultry, cattle, sheep, swine, goats, 
horses, mules, and other equines. 
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‘‘(3) QUALIFIED FACILITY.—The term ‘quali-
fied facility’ means a facility that— 
‘‘(A) uses anaerobic digesters or other bio-
logical, chemical, or thermal processes to con-
vert qualified energy feedstock into biogas, 
‘‘(B) is owned by the taxpayer, 
‘‘(C) is located in the United States, 
‘‘(D) is originally placed in service after 
the date of the enactment of this section and 
before January 1, 2018, and 
‘‘(E) the biogas output of which is— 
‘‘(i) marketed through interconnection 
with a gas distribution or transmission 
pipeline, 
‘‘(ii) marketed as a gaseous or liquid 
fuel such as hydrogen or natural gas and 
then used as a fuel, or 
‘‘(iii) reasonably expected to be used 
in a quantity sufficient to offset the con-
sumption of at least 5,000 mmBtu annu-
ally of commercially-marketed fuel derived 
from coal, crude oil, natural gas, propane, 
or other fossil fuel. 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
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‘‘(1) INCREASED CREDIT FOR QUALIFIED CEL-
LULOSIC ENERGY FEEDSTOCK.— 
‘‘(A) IN GENERAL.—In the case of biogas 
is produced from qualified cellulosic energy 
feedstock, subsection (a) shall be applied by 
substituting the dollar amount in effect for the 
taxable year under subsection (a)(1) with an 
amount equal to 125 percent of such dollar 
amount. 
‘‘(B) QUALIFIED
CELLULOSIC
ENERGY 
FEEDSTOCK.—For purposes of subparagraph 
(A), the term ‘qualified cellulosic energy feed-
stock’ means an qualified energy feedstock that 
is 
composed 
of 
any 
lignocellulosic 
or 
hemicellulosic matter. 
‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAX-
PAYER.—In the case of a facility in which more than 
1 person has an ownership interest, except to the ex-
tent provided in regulations prescribed by the Sec-
retary, production from the qualified facility shall be 
allocated among such persons in proportion to their 
respective ownership interests in the gross sales 
from such qualified facility. 
‘‘(3) RELATED
PERSONS.—Persons shall be 
treated as related to each other if such persons 
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sold by the taxpayer in such taxable year which is 
taken into account under section 45. 
‘‘(7) CREDIT ELIGIBILITY IN THE CASE OF GOV-
ERNMENT-OWNED FACILITIES.—In the case of any 
facility producing biogas and that is owned by a gov-
ernmental unit, subparagraph (B) of subsection 
(b)(3) shall be applied by substituting ‘is leased or 
operated by the taxpayer’ for ‘is owned by the tax-
payer’. 
‘‘(d) TRANSFERABILITY OF CREDIT.— 
‘‘(1) IN GENERAL.—A taxpayer may transfer 
the credit under this section through an assignment 
to any person. Such transfer may be revoked only 
with the consent of the Secretary. 
‘‘(2) REGULATIONS.—The Secretary shall pre-
scribe such regulations as necessary to ensure that 
any credit transferred under paragraph (1) is 
claimed once and not reassigned by such other per-
son. 
‘‘(e) ADJUSTMENT BASED ON INFLATION.— 
‘‘(1) IN GENERAL.—The dollar amount under 
subsection (a)(1) shall be adjusted by multiplying 
such amount by the inflation adjustment factor for 
the calendar year in which the sale occurs. If any 
amount as increased under the preceding sentence is 
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not a multiple of 1 cent, such amount shall be 
rounded to the nearest multiple of 1 cent. 
‘‘(2) COMPUTATION
OF
INFLATION
ADJUST-
MENT FACTOR.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
not later than April 1 of each calendar year, de-
termine and publish in the Federal Register the 
inflation adjustment factor in accordance with 
this paragraph. 
‘‘(B) INFLATION ADJUSTMENT FACTOR.— 
The term ‘inflation adjustment factor’ means, 
with respect to a calendar year, a fraction the 
numerator of which is the GDP implicit price 
deflator for the preceding calendar year and the 
denominator of which is the GDP implicit price 
deflator for calendar year 2007. The term 
‘GDP implicit price deflator’ means the most 
recent revision of the implicit price deflator for 
the gross domestic product as computed and 
published by the Department of Commerce be-
fore March 15 of the calendar year.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘plus’’ at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and in-
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serting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(34) the qualified biogas production credit 
under section 45Q(a).’’. 
(c) CREDIT
ALLOWED
AGAINST
AMT.—Section 
38(c)(4)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (iii), by 
striking the period at the end of clause (iv) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(v) the credit determined under section 45Q.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45Q. Biogas produced from certain renewable feedstock.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to biogas produced and sold (or 
used) in taxable years beginning after the date of the en-
actment of this Act. 
Æ 
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