In a bipartisan move to accelerate the shift toward cleaner commercial transportation, lawmakers recently introduced the Renewable Natural Gas Incentive Act of 2025, which proposes a $1.00 per gallon tax credit for renewable natural gas (RNG) used as a vehicle fuel. If passed the bill would create financial incentives for commercial fleets to adopt cleaner energy sources.
The RNG tax incentive could lower fuel costs for fleets using natural gas-powered trucks, making RNG competitive with diesel while offering substantial emissions reductions. As fuel is one of the biggest operating expenses in trucking, this incentive could make RNG adoption economically viable — even advantageous.
Benefits of the RNG Incentive Act for commercial trucking include:
- Reduced operating costs via the $1.00/gal tax credit
- Eligibility for carbon credits and clean fuel programs
- Lower maintenance compared to diesel engines
- Reduced emissions to meet ESG and state/federal sustainability targets
The RNG tax credit would be available through 2033, giving fleet operators nearly a decade of financial support to make the transition. By making RNG more financially attractive, it paves the way for fleets to lower their carbon footprint without compromising efficiency or performance.
