NATSO, representing America’s travel centers and truck stops, SIGMA: America’s Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) commended Rep. Mike Carey (R-Ohio) for introducing the bipartisan “Biodiesel Tax Credit Extension Act of 2026.”
The “Biodiesel Tax Credit Extension Act of 2026” would extend the $1 per gallon biodiesel tax credit through 2029 at the blender level. Taxpayers would be able to choose between claiming the Biodiesel Tax Credit or the ‘45Z’ Clean Fuel Production Credit. The bipartisan legislation is co-sponsored by U.S. Representatives Salud Carbajal (D-Calif.), Lou
Correa (D-Calif.), Jim Costa (D-Calif.), Ashley Hinson (R-Iowa), Dusty Johnson (R-S.D.), Mike Kelly (R-Pa.), Darin LaHood (R-Ill.), Tracey Mann (R-Kan.), Mariannette Miller-Meeks (R-Iowa) and Claudia Tenney (R-N.Y.).
Extending the Biodiesel Blenders’ Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, helping to stabilize fuel supply options and mitigate fuel costs for consumers. Geopolitical instability in the Middle East has introduced significant uncertainty into global oil markets, placing upward pressure on fuel prices.
NATSO, SIGMA and NACS urge Congress to quickly enact the “Biodiesel Extension Act of 2026,” implementing a concrete step Congress can take to lower costs for truck drivers and consumers. “The Biodiesel Blenders’ Tax Credit is a tried and true, consumer-oriented policy with tangible benefits that include lower operating costs for businesses, higher crop demand for farmers, and decreased household expenses for Americans,” said David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA. “We commend Representative Carey and other Members of Congress
for recognizing the critical role that renewable diesel and biodiesel play in ensuring stable fuel supplies
while offering consumers a more affordable alternative to conventional fuel by supporting an extension
of the Biodiesel Blenders’ Tax Credit. We urge Congress to extend this successful policy as soon as
possible.”
“NACS appreciates the leadership of Representative Carey and Members of Congress in supporting renewal of the Biodiesel Blenders’ Credit, which is critical to securing a viable future for advanced renewable fuels,” said NACS Deputy General Counsel Matt Durand. “With fuel prices putting continued pressure on consumers, this legislation reflects a proven approach to boosting domestic production while helping reduce costs at the pump, and Congress should act quickly to advance it.” A recent report titled, “Tax Credit Impact on U.S. Biofuels,” conducted by leading energy research and analytics firm GlobalData found that when the $1 per gallon Biodiesel Tax Credit was in place,
between 50 percent and 70 percent of the credit value passed through the supply chain to the benefit of
consumers and farmers.
When fuel retailers pay less to buy and blend biofuel, they can pass savings on to customers in the form
of lower fuel prices. The simple structure of the $1 per gallon Biodiesel Blenders’ Tax Credit provided
transparency into the value across the supply chain that allowed fuel retailers to access savings and
extend those benefits to consumers.
The Biodiesel Tax Credit also lowered the cost of all consumer goods moved by truck by lowering fuel
costs for commercial trucking fleets. When the Biodiesel Tax Credit was in place, $0.60 per gallon in
value reached the downstream diesel supply chain.
NATSO, SIGMA and NACS urge Congress to enact the Biodiesel Tax Credit Extension Act of 2026 as
quickly as possible and look forward to working with lawmakers to advance policies that ensure fuel
retailers can offer fuel supply options at the lowest possible price to consumers.
