NATSO, representing America’s travel centers and truck stops, SIGMA, and the National Association of Convenience Stores (NACS) are celebrating the introduction of the bipartisan “Biodiesel Tax Credit Extension Act of 2026.”
The “Biodiesel Tax Credit Extension Act of 2026” would extend the $1 per gallon biodiesel tax credit through 2029 at the blender level. Taxpayers would be able to choose between claiming the Biodiesel Tax Credit (BTC) or the Section 45Z Clean Fuel Production Credit (PTC).
“The Biodiesel Blender’s Tax Credit is a tried and true, consumer-oriented policy with tangible benefits that include lower operating costs for businesses, higher crop demand for farmers, and decreased household expenses for Americans,” said David Fialkov, executive vice president of government affairs for NATSO and SIGMA. “We commend Representative Carey and other Members of Congress for recognizing the critical role that renewable diesel and biodiesel play in ensuring stable fuel supplies while offering consumers a more affordable alternative to conventional fuel by supporting an extension of the Biodiesel Blenders’ Tax Credit. We urge Congress to extend this successful policy as soon as possible.”
Incentivizing Fuel Retailers Nationwide
“Extending the Biodiesel Blender’s Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, helping to stabilize fuel supply options and mitigate fuel costs for consumers,” the groups said.
“Geopolitical instability in the Middle East has introduced significant uncertainty into global oil markets, placing upward pressure on fuel prices.”
NATSO, SIGMA, and NACS are urging Congress to quickly enact the “Biodiesel Extension Act of 2026,” which would implement a concrete step Congress can take to lower costs for truck drivers and consumers.
Relieving Fuel Price Pressures
“NACS appreciates the leadership of Representative Carey and Members of Congress in supporting renewal of the Biodiesel Blender’s Credit, which is critical to securing a viable future for advanced renewable fuels,” said Matt Durand, NACS deputy general counsel. “With fuel prices putting continued pressure on consumers, this legislation reflects a proven approach to boosting domestic production while helping reduce costs at the pump, and Congress should act quickly to advance it.”
Tax Credit Impact on U.S. Biofuels
A recent report titled “Tax Credit Impact on U.S. Biofuels,” conducted by energy research and analytics firm GlobalData, found that when the $1-per-gallon BTC was in place, between 50 and 70% of the credit value passed through the supply chain to the benefit of consumers and farmers, resulting in lower prices.
“When fuel retailers pay less to buy and blend biofuel, they can pass savings on to customers in the form of lower fuel prices,” the groups said. “The simple structure of the $1-per-gallon Biodiesel Blender’s Tax Credit provided transparency into the value across the supply chain that allowed fuel retailers to access savings and extend those benefits to consumers. The Biodiesel Tax Credit also lowered the cost of all consumer goods moved by truck by lowering fuel costs for commercial trucking fleets. When the Biodiesel Tax Credit was in place, $0.60 per gallon in value reached the downstream diesel supply chain.”
The bipartisan legislation to revive the BTC is co-sponsored by U.S. Representatives Salud Carbajal (D-Calif.), Lou Correa (D-Calif.), Jim Costa (D-Calif.), Ashley Hinson (R-Iowa), Dusty Johnson (R-S.D.), Mike Kelly (R-Pa.), Darin LaHood (R-Ill.), Tracey Mann (R-Kan.), Mariannette Miller-Meeks (R-Iowa), and Claudia Tenney (R-N.Y.).
“NATSO, SIGMA and NACS urge Congress to enact the Biodiesel Tax Credit Extension Act of 2026 as quickly as possible and look forward to working with lawmakers to advance policies that ensure fuel retailers can offer fuel supply options at the lowest possible price to consumers,” the groups said.
Originally shared by The Trucker. Title and article edited for clarity and purpose. Image Credit: Flickr – United Soybean Board
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively. All posts are shared for educational purposes only.