Biogas Energy Tax Credits

Renewable energy is simply energy that has been generated from renewable sources. Before we can look into biogas energy tax credits, we first must look into what exactly we mean by renewable energy, the types and the sources and what tax credits refer to when it comes to this renewable energy. As a renewable energy, biogas is one of the most common and it is generated from different gases which come about the breakdown of organic matter that is not exposed to oxygen.

Biogas and Tax credits


As of now, you know what biogas is. The hype for biogas has been around for a long time and for it to be generated, the only thing needed is some organic matter to be broken down in the absence of oxygen. Biogas energy tax credits came about because of how the gas is being developed and of course to promote renewable energy. Depending on where you are, the tax credits might vary slightly but the concept is generally the same.

One of the other reasons why the tax credits are available is because no country can survive in only one technology and therefore, a conducive environment must be created for the production of biogas. Before anyone can start producing biogas on a large scale, they need to really have an understanding of what these tax credits are and how they are applied.

Without proper policies in place, there is no way manufacturers and producers of biogas would be able to have an impact on the economy by use of renewable energy sources. Biogas power can be very beneficial to many industries and especially the industries that affect the livelihood of our nation like agriculture. Providing a farmer with a cheaper and alternative way of getting affordable power in order to ensure their activities are not put a hold is, therefore, a priority.

The biogas Tax Credit Act and why it’s important


The tax credit act plays a very big role and its importance can’t be emphasized enough. For one, the act being passed as a bill allows for investments to be done on biogas production. The act has simply made it possible for biogas production to fall under the same category as the solar ITC or what is also known as bond financing which in turn plays a very big role in encouraging co-operatives found in rural areas to participate in such investments. The tax credit act also makes it very possible for the public power to make investments in biogas production as an alternative source of renewable energy.

Not only does the power encourage investments on biogas production and projects, it also touches on any property that has any relation to biogas production in terms of any chemical, mechanical processors and thermal as well as anaerobic digesters. This can be either singularly or in part. The act still touches on this aspects.

What are the benefits of biogas?


Of course, to come into a greater understanding of the tax credits, we must look into how exactly biogas is beneficial and how it affects the day to day activities of those in the agriculture industry like farmers.

Biogas has very little methane in percentage in comparison to the natural gas that we use for both our domestic and commercial needs. This, in turn, will, of course, lead to the reduction of methane being emitted into the air and therefore we have a positive impact on our environment.

American Biogas Council


The American Biogas Council has really taken into account the tax credit and is really working towards increasing biogas production in America. As per their news, the tax credits on biogas production is up to 30% of biogas produced. This is an amazing feat as now more and more can be done when it comes to renewable energy.

The bill was passed on in the year 2014 by Senator Chuck Schumer and only those technologies that are qualified for biogas production would be able to enjoy the tax credits. With this news, the Biogas America council have been able to push for job creation, in relation to biogas as well as promoting environmental stability in the biogas footprint. Of course, one of their key objectives is to grow the biogas industry for a sustainable renewable energy future.

How we assist


We are more than capable when it comes to providing you with the legal counsel when it comes to biogas and its production. We are very well versed in different aspects of the tax credit that was passed and how to apply it in your venture. Whether you are doing large scale or just working on a small project, knowing how to apply the tax credit for a profitable project should be one of your key priorities.

As a new technology that will see the transformation of how energy is consumed in America, we have also gone ahead and equipped ourselves with all the information necessary that you will need whether you have started the project or not. As much as the legislation has been passed, you have to be sure that you are qualified to take benefit of the tax credit. As earlier discussed, the tax credits not only cover production but additional structures that are used in the production.