Biodiesel Tax Credit Extension Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3137 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3137

  To amend the Internal Revenue Code of 1986 to extend the biodiesel 
             fuels credit and the biodiesel mixture credit.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2025

 Mr. Carey (for himself, Mrs. Miller-Meeks, Ms. Tenney, Mr. Johnson of 
South Dakota, Mr. Garbarino, Mr. LaHood, and Mr. Kelly of Pennsylvania) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend the biodiesel 
             fuels credit and the biodiesel mixture credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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) 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.
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