On November 8, NATSO and SIGMA, representing nearly 80% of retail fuel locations, urged Congress to capitalize on growing momentum during the lame-duck session to extend several expiring tax credits, including the critical $1-per-gallon biodiesel blender tax credit. This tax incentive has been essential in reducing diesel costs, lowering transportation expenses, and supporting the nation’s renewable fuel market growth.
Both associations commended Senator Chuck Grassley (R-IA) for his commitment to preserving biodiesel tax incentives among key “must-pass” provisions. They expressed gratitude toward Representatives Mike Carey (R-OH), Annie Kuster (D-NH), and Claudia Tenney (R-NY), who co-sponsored bipartisan bill HR 9060 to extend the credit by one year.
The biodiesel blender tax credit plays a vital role in the short-term strategy to cut emissions in the trucking and rail industries. Despite its pivotal role, ongoing policy uncertainty—fueled by delays in guidance from the Biden administration on the 45Z clean fuel production credit—has created challenges for producers and retailers. HR 9060 has garnered support from diverse industry stakeholders, such as the American Trucking Association and various state soybean associations, emphasizing the credit’s importance.
Extending the tax credit would provide stability to the biodiesel and renewable diesel sectors, enabling them to continue reducing carbon emissions, keeping diesel prices low, and offering relief to consumers. This credit has helped expand the U.S. biodiesel market from 100 million gallons in 2005 to nearly 4 billion gallons in 2023, marking a significant step toward sustainable transportation.