Biogas Tax Credit

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Biogas Electricity Generation Tax Credit is Back

Biogas-to-Energy Investment Tax Credit Extension - facilities that generate electricity from biogas are now eligible for significant tax credit.

Capital project funding is a key element in determining which projects are most feasible. At Symbiont, we keep apprised of project funding sources which can help our clients make projects financially viable and improve return on investment.

In the manufacturing and energy sectors, there is good news on the project funding front. The IRS Section 48: Energy Investment Tax Credit (ITC) is back.  Under the “Extenders Bill,” biomass-to-electricity (anaerobic digestion) projects that previously may not have qualified are now eligible for significant project capital support via a tax credit scenario. This often applies to 90% of the total project cost.

The biomass-to-electricity (anaerobic digestion using biomass-derived biogas to generate electricity) possible tax credit under Section 45(d)(3) was extended three years (two of them retroactive) for projects that begin construction before 2021. Once acquired, Owners can spread the tax credit for up to five years and can designate lessees or operators as credit recipients.

The 30% investment tax credit applicable to the electrical generation equipment and any property that is significant to the generation of electricity such as digester storage tanks, H2S removal, and gas conditioning equipment and processing. For example, on a $9 million waste treatment facility, adding a $1 million electrical generator may result in $2.75 million in federal tax credits at the time the project is placed in service.

Symbiont Provides ITC Tax Credit Application Support Services

Navigating project funding acquisition can be a difficult process without previous experience. Symbiont has assisted numerous manufacturing plants in applying for and receiving this tax credit for making biogas as a part of their waste treatment systems, and is well versed in the requirements, making it a smooth process.

Recent Symbiont projects that took advantage of the ITC:

 

 

Got biogas or biomass you are not using, and want to convert to electricity? Contact one of Symbiont’s Business Development Engineers, and we can calculate your project’s anticipated tax credit to help plan your project implementation.