“To amend the Internal Revenue Code of 1986 to extend the biodiesel fuels credit and the biodiesel mixture credit.”
No CRS summary available for this bill.
This section extends the biodiesel and renewable diesel credit (IRC §40A) through 2026 (from 2024); extends the biodiesel mixture credit (IRC §6426(c)) and related payments for biodiesel used for nontaxable purposes (IRC §6427(e)) through 2026 (from 2024); and extends the second generation biofuel portion of the alcohol fuel credit (IRC §40(b), i.e., biofuel produced from cellulose, hemicellulose, or lignin not separated from biomass via fermentation or chemical processes) through January 1, 2027 (from January 1, 2025). It also coordinates each credit with the clean fuel production credit (IRC §45Z, i.e., for production of transportation fuels with lifecycle greenhouse gas emissions at least 50% below petroleum baseline) by denying the biofuel credit for any fuel eligible for §45Z. (Thus, taxpayers cannot claim both credits for the same fuel.) The changes apply to fuel sold or used, or second generation biofuel produced, after December 31, 2024.