Biodiesel Tax Credit Extension Act of 2025

This bill keeps certain federal tax credits for biodiesel and renewable diesel going, and continues the credit for biodiesel blends. It also extends a credit for “second-generation” biofuels made from non-food sources. The goal is to support cleaner fuels while avoiding “double dipping” with a separate clean fuel production credit.

Key points:

• Who is affected: Businesses that make or mix biodiesel and renewable diesel, and producers of second‑generation biofuels.
• What changes: The biodiesel/renewable diesel credit and the biodiesel mixture credit are extended; if a company claims the clean fuel production credit for a fuel, it can’t also claim these credits for the same fuel. The second‑generation biofuel production credit is extended through 2026.
• When: The biodiesel-related extensions apply to fuel sold or used after December 31, 2024. The second‑generation biofuel changes apply to production after December 31, 2024, and run until January 1, 2027.