Sponsors (18)
The bill reduces duplicate clean-fuel subsidies and clarifies tax treatment to protect taxpayers and program integrity, but does so retroactively and at the expense of reduced tax benefits and project viability for some clean-fuel producers.
Taxpayers and small businesses: the bill prevents duplicate federal subsidies for the same fuel, reducing potential overpayments and limiting wasteful government spending.
Taxpayers and energy companies: clarifies tax treatment for clean fuels, simplifying compliance and reducing IRS disputes over overlapping credits.
Taxpayers and energy companies: preserves the integrity of the clean fuel credit program by targeting incentives to distinct activities rather than allowing stacked benefits, which improves policy effectiveness.
Taxpayers and small businesses: the provision applies retroactively to fuel sold or used on or after enactment, creating immediate compliance, accounting, and potential cash-flow burdens.
Fuel sellers and producers (including small businesses and energy companies): inability to stack credits will reduce tax benefits and can weaken the project economics for some clean-fuel investments.
Utilities/energy companies and small biodiesel producers: reducing or eliminating stacked credits may lessen the financial incentive to produce certain biodiesel/renewable diesel blends, potentially slowing some production.
Based on analysis of 2 sections of legislative text.
Prevents claiming both the new clean fuel production credit and existing biodiesel/renewable diesel income or excise credits for the same fuel.
Official title: To amend the Internal Revenue Code of 1986 to extend biodiesel and renewable diesel incentives, and for other purposes.
Introduced April 27, 2026 by Mike Carey · Last progress April 27, 2026
Prevents taxpayers from claiming the new clean fuel production credit and existing biodiesel/renewable diesel income or excise-tax credits for the same fuel. Changes to the Internal Revenue Code make fuels that receive the new section 45Z(a) credit ineligible for overlapping benefits under the biodiesel/renewable diesel income tax credit and related excise-tax credit/payment rules, effective for fuel sold or used on or after enactment.