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A coalition of fuel industry groups is applauding a bipartisan effort in the U.S. House of Representatives to extend a key tax credit for biodiesel. NATSO, representing travel centers and truck stops, along with SIGMA: America鈥檚 Leading Fuel Marketers and the National Association of Convenience Stores (NACS), expressed strong support for the proposed Biodiesel Tax Credit Extension Act of 2025.

The bill, introduced by Rep. Mike Carey, R-Ohio, and co-sponsored by Reps. Andrew Garbarino, R-N.Y.; Dusty Johnson, R-S.D.; Mike Kelly, R-Pa.; Darin LaHood, R-Ill.; Claudia Tenney, R-N.Y.; and Mariannette Miller-Meeks, R-Iowa, would extend the biodiesel blender鈥檚 tax credit under Section 40A for two more years. The legislation allows taxpayers to choose between the traditional blender鈥檚 credit or the newer Section 45Z Clean Fuel Production Credit.

Fuel retailers say the extension is urgently needed. Since the credit expired at the end of 2024, biodiesel and renewable diesel volumes have dropped nearly 59%, raising concerns about fuel supply and rising consumer costs.

鈥淭his legislation comes at a critical time, as falling renewable diesel volumes are heightening concerns about meeting demand,鈥� said David Fialkov, executive vice president of government affairs for NATSO and SIGMA. 鈥淭he blender鈥檚 credit is simple, effective, and immediately impactful. We commend Rep. Carey and his colleagues for recognizing the need to support renewable fuels with practical, proven policy.鈥�

First enacted in 2004, the biodiesel tax credit has helped fuel retailers invest in infrastructure and enabled consumers to purchase lower-cost, low-carbon fuel blends. According to supporters, the credit not only lowers fuel costs but also reduces greenhouse gas emissions and creates jobs.

The expiration of the credit鈥攃ombined with confusion surrounding the more complex Section 45Z incentive鈥攈as created major disruptions in the biofuels market. Several biodiesel production facilities have scaled back operations or shut down entirely, stakeholders say.

鈥淓xtending the blender鈥檚 credit would quickly restore stability to the market and ease inflationary pressures on goods moved by truck,鈥� said Fialkov.

NACS also voiced strong support for the bill. 鈥淭his legislation is a proven tool for encouraging domestic fuel production and reducing costs for consumers,鈥� said Matt Durand, deputy general counsel at NACS. 鈥淲e urge Congress to act swiftly.鈥�

The credit is widely supported across sectors, including trucking, shipping, and home heating, due to its impact on lowering fuel and delivery costs. Biodiesel, especially in commercial trucking, is considered a leading option for cutting carbon emissions in existing fleets.