The small agri-biodiesel producer credit doubles to 20 cents and runs to 2026
What the document says“The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.”
The section amends section 40A of the Internal Revenue Code of 1986 by striking 10 cents and inserting 20 cents, by requiring production to comply with the North American feedstock rule, by providing that the credit is on top of any clean fuel production credit for the same gallon, and by extending the small agri-biodiesel producer credit to any sale or use after December 31, 2026. It also adds the credit to the list of transferable credits in section 6418(f)(1)(A). The changes apply to fuel sold or used after June 30, 2025.
What the document actually says“The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel.”
This credit comes on top of the other one. Both may be claimed for the same gallon.
The rate goes from 10 cents to 20 cents. The fuel must meet the North American feedstock rule. The credit may also be sold on.
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