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Committee backs tax credit for upgrading landfill biogas to pipeline-quality gas
Summary
Senate Bill 556 would offer a tax credit covering 25% of capital investment (up to $5 million per year) for equipment that purifies landfill biogas for pipeline transmission; subcommittee changes shortened carryforward windows and made the credit nonrefundable.
The sponsor described SB 556 as a credit intended to help pay the capital costs of equipment that upgrades raw biogas at landfills to pipeline-quality natural gas. The sponsor said the projects require substantial upfront investment and proposed a 25% tax credit of the investment, claimable up to $5,000,000 per year and carried forward over a 15-year period.
Committee staff described subcommittee changes: the credit is nonrefundable and the subcommittee shortened the previously proposed eligibility window so that credits earned before 2030 (rather than 2032) can be carried forward. Members also discussed a potential $10 million per‑year cap and a four‑year window for qualifying facilities; staff said the subcommittee’s amendments were the only changes made there.
After brief discussion, a member moved a favorable report; committee members voiced assent and the chair recorded the favorable action. The motion to give a favorable report was seconded and approved by voice vote.
Next steps: SB 556 received a favorable report from the committee as amended; the committee did not record a roll-call tally in the transcript for this item.
