119-HR3137

Bill is currently in: House
Path to Law
House Senate President

119th CONGRESS

1st Session

H. R. 3137

1. Short title
2. Extension of biofuel tax incentives

1. Short title

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

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) Denial of Double Benefit - 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 of credit for fuels used for taxable purposes

(A) In general - Section 6426(c)(6) of such Code is amended by striking "2024" and inserting "2026".

(B) Denial of double benefit - Section 6426(c) of such Code is amended by adding at the end the following new paragraph:

(7) 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 applicable amount determined under this paragraph (2) with respect to such fuel shall be zero.

(2) Extension of credit for fuels not used for taxable purposes - Section 6427(e)(6)(B) of such Code is amended by striking "2024" and inserting "2026".

(c) Extension of alcohol fuel credit with respect to second generation biofuel production and coordination with clean fuel production credit

(1) Coordination with clean fuel production credit - Section 40(b) of such Code is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

(6) Coordination with clean fuel production credit - No credit shall be determined under this paragraph with respect to fuel with respect to which a credit was allowed under section 45Z(a).

(2) Extension - Section 40(b)(7)(J)(i) of such Code (as so redesignated) is amended by striking "January 1, 2025" and inserting "January 1, 2027".

(d) Effective dates

(1) Biodiesels - The amendments made subsections (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.