Rep. Mike Carey (R-Ohio) introduced the Biodiesel Tax Credit Extension Act of 2024, which seeks to extend the biodiesel tax credit (40A credit) through 2025. The bill excludes sustainable aviation fuel (SAF) and includes a provision preventing fuels eligible for the forthcoming 45Z Clean Fuel Production Credit from claiming the biodiesel tax credit. Currently, there is no companion legislation in the Senate. This bill is noteworthy for its potential impact on end-of-year and tax extender legislation. The bill has been referred to the House Committee on Ways and Means.
The bill has garnered support from various industry groups, including NATSO (representing travel centers and truck stops), SIGMA (fuel marketers) and the National Association of Convenience Stores (NACS). These organizations commend the bill for its role in promoting renewable fuels, reducing greenhouse gas emissions and supporting the economy.
Biodiesel and renewable diesel can reduce emissions by up to 80% compared to petroleum-based diesel. The credit also helps lower the cost of diesel fuel for truck drivers, which can reduce shipping costs and consumer prices.
Of note: Contacts note with the 45Z credit not available for imported biodiesel, the extension of the tax credit could allow those shipments to qualify.
Get Pro Farmer’s news and market analysis that isn’t available online with a Pro Farmer subscription. Learn more.
