Biodiesel Tax Credit Extension Act of 2025

In May 2025, Representative C.Arey introduced H.R. 3137, a bill to extend the biodiesel fuels credit and the biodiesel mixture credit.

Short Title

This Act may be cited as the “Biodiesel Tax Credit Extension Act of 2025”

Section 1: Short Title

This Act may be cited as the ‘‘Biodiesel Tax Credit Extension Act of 2025’’.

SECTION 2. EXTENSION OF BIOFUEL TAX INCENTIVES

(a) EXTENSION OF BIODIESEL AND RENEWABLE DIESEL CREDIT

(1) IN GENERAL.—Section 40A(g) of the Internal Revenue Code of 1986 is amended by striking ‘‘2024’’ and inserting ‘‘2026’’.

(2) DENIAL OF DOUBLE BENEFIT.—Section 40A of such Code is amended— (A) by redesignating subsection (g) (as amended) as subsection (h), and (B) by inserting after subsection (f) the following new subsection:

‘‘(g) DENIAL OF DOUBLE BENEFIT.—In the case of any fuel with respect to which a credit is allowed under section 45Z(a) for any taxable year, the amount determined under this section with respect to such fuel shall be zero.’’

(b) EXTENSION OF BIODIESEL MIXTURE CREDIT

(1) EXTENSION.—Section 40A(b)(5)(C) of the Internal Revenue Code of 1986 is amended by striking ‘‘January 1, 2025’’ and inserting ‘‘January 1, 2027’’.

SECTION 3: EFFECTIVE DATES

(1) BIODIESELS.—The amendments made under sections (a) and (b) shall apply to fuel sold or used after December 31, 2024.

(2) SECOND GENERATION BIOFUELS.—The amendments made by subsection (c) shall apply to qualified second generation biofuel (as defined in section 40(b)(6)(C) of such Code) production occurring after December 31, 2024.

Direct Link

Read the full bill at https://www.govinfo.gov/app/details/BILLS-119hr3137ih.