Agricultural Environmental Stewardship Act of 2025This bill extends for one year the energy investment tax credit for qualified biogas property (property that converts biomass into methane and captures the gas for sale or productive use).Under the bill, the energy investment tax credit (as part of the general business tax credit) is allowed for investments in qualified biogas property for which construction begins on or before December 31, 2025. (Under current law, to qualify for the tax credit, construction of qualified biogas property must begin on or before December 31, 2024.)
Impact
If enacted, HB 536 would significantly impact energy regulations related to biogas production, effectively supporting sustainability initiatives within the agricultural sector. Through the extension of the energy credit, the bill is likely to bolster the financial feasibility of biogas projects, which can provide farmers with an additional revenue stream and contribute to reducing greenhouse gas emissions. Such incentives align with broader governmental goals of transitioning towards cleaner energy sources while simultaneously supporting agricultural innovations.
Summary
House Bill 536, officially titled the ‘Agricultural Environmental Stewardship Act of 2025,’ aims to amend the Internal Revenue Code by extending the energy credit for qualified biogas property. This bill seeks to incentivize the development and construction of facilities that generate biogas, which is considered a renewable energy source. By extending the energy credit deadline from December 31, 2024, to December 31, 2025, the bill encourages investment in biogas facilities and reinforces the government’s commitment to promoting environmentally-friendly agricultural practices.
Contention
While the bill aims to promote renewable energy and sustainable farming practices, it may face scrutiny and debate about the potential impacts on federal revenues and the prioritization of agricultural funding. Some lawmakers may question whether extending such tax credits serves the greater public good or disproportionately advantages certain agricultural entities. Furthermore, there may be discussions regarding how these credits will be monitored and if they lead to tangible environmental benefits, thus sparking various points of contention in legislative sessions.
Revitalizing Downtowns Act This bill expands the investment tax credit to add a qualified office conversion credit. The amount of such credit is 20% of the qualified conversion expenditures with respect to a qualified converted building. The bill defines qualified converted building as any building if (1) prior to conversion, the building was nonresidential real property which was leased, or available for lease, to office tenants; (2) the building has been substantially converted from an office use to a residential, retail, or other commercial use; (3) the building was initially placed in service at least 25 years prior to the beginning of the conversion, and (4) straight line depreciation is allowable with respect to the building.
To amend the Internal Revenue Code of 1986 to include room air conditioners as qualified energy property for purposes of the energy efficient home improvement credit.
A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for qualified conservation contributions which include National Scenic Trails.
Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.
Real Estate Exchange Fairness Act of 2023 This bill requires Puerto Rico to be treated as part of the United States for the purpose of determining if an exchange of real property qualifies as a like-kind exchange for tax purposes. (Under current law, real property located in the United States and real property located outside of the United States are not property of a like kind.)