H.R. 3137

119th CONGRESS 1st Session

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

IN THE HOUSE OF REPRESENTATIVES · May 1, 2025 · Sponsor: Mr. Carey · Committee: Committee on Ways and Means

Table of contents

• H.R. 3137
  • SEC. 1. Short title
  • SEC. 2. Extension of biofuel tax incentives

SEC. 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
    • of the Internal Revenue Code of 1986 is amended by striking and inserting . Section 40A(g)
  • (2) Denial of double benefit
    • Section 40A of such Code is amended—
      • by redesignating subsection (g) (as amended) as subsection (h), and
        • (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.
      • by inserting after subsection (f) the following new subsection:
• (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 and inserting .
    • (B) Denial of double benefit
      • (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.
      • Section 6426(c) of such Code is amended by adding at the end the following new paragraph:
  • (2) Extension of credit for fuels not used for taxable purposes
    • Section 6427(e)(6)(B) of such Code is amended by striking and inserting .
• (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
    • (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).
    • 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:
  • (2) Extension
    • Section 40(b)(7)(J)(i) of such Code (as so redesignated) is amended by striking January 1, 2025and 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.