An unconventional form of alternative energy — methane produced from cow manure — may soon
qualify for large renewable energy tax credits under President Obama’s financial stimulus plan. Sen. Ben Nelson (D-Nebraska) has introduced legislation that would give the tax credits to farmers who install biogas plants that collect manure gas. A dairy farmer with 1,000 head of cattle would receive a tax credit of $63,000 annually to build and operate a biogas plant on his farm, an incentive that Nelson says is necessary to make biogas production competitive with natural gas. Similar bills have been introduced in recent Congressional sessions, but analysts say the current biogas legislation has a good chance of passage since Obama has called for $25 billion in tax incentives to producers of renewable energy.