Fuel Retailers Applaud House Legislation to Extend the Biodiesel Tax Credit

ALEXANDRIA, Va., May 2, 2025 /PRNewswire/ -- NATSO, representing America's travel centers and truck stops, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS), commended a bipartisan group of lawmakers for introducing the "Biodiesel Tax Credit Extension Act of 2025," which would extend the "40A" biodiesel blender's tax credit. The legislation is sponsored by Representative Mike Carey (R-Ohio) along with Representatives Andrew Garbarino (R-NY), Dusty Johnson (R-SD), Mike Kelly (R-PA), Darin LaHood (R-IL), Claudia Tenney (R-NY), and Mariannette Miller-Meeks (R-Iowa).

The "Biodiesel Tax Credit Extension Act of 2025" would extend the biodiesel tax credit for two years at the blender level. Taxpayers would be able to choose between claiming the Biodiesel Tax Credit or the '45Z' Clean Fuel Production Credit.

Extending the Biodiesel Blenders' Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel at a time when American access to low-cost biofuels is rapidly decreasing. Total renewable diesel and biodiesel volumes have declined by 58.8 percent since the Biodiesel Tax Credit expired at the end of 2024.  

"This legislation comes at a critical juncture, as diminishing renewable diesel and biodiesel volumes are intensifying industry concerns about the ability to meet customer demand," said David Fialkov Executive Vice President of Government Affairs for NATSO and SIGMA. "Not only would this legislation inject much-needed certainty into biofuel markets, but it is easy to understand and to implement. For too long, too many people have been pursuing extraordinarily complicated policy solutions. It has only served to exacerbate uncertainty and market challenges. Simplicity is important.

"We commend Representative Carey, and all the lawmakers co-sponsoring this legislation, for recognizing the critical role that renewable diesel and biodiesel play in ensuring stable fuel supplies and lowering fuel costs for consumers by supporting an extension of the Biodiesel Blenders' Tax Credit," Fialkov said. "We urge Congress to extend this successful policy as soon as possible."

Since 2004, the Biodiesel Tax Credit has effectively spurred fuel retailers to invest in the necessary infrastructure to sell low-carbon alternative fuels while encouraging consumers to buy renewable fuel blends due to their lower cost. The biodiesel tax credit helps create jobs, reduce the transportation sector's greenhouse gas emissions, and enables fuel retailers to offer more competitively priced diesel fuel.

The expiration of the Biodiesel Tax Credit at the end of 2024 coupled with market uncertainty created by the new and complex '45Z' Clean Fuel Production Tax Credit has decimated biofuels supply chains. Many biofuel production facilities, particularly biodiesel plants, have scaled back or are shutting down entirely.

The Biodiesel Blender's Tax Credit worked successfully to build a robust renewable diesel industry in the United States while decreasing carbon emissions associated with transportation fuel. The U.S. biodiesel and renewable diesel market had grown to approximately 4 billion gallons in 2023 from roughly 100 million gallons in 2005 before dropping precipitously in the first quarter of 2025.

Extending the Biodiesel Tax Credit will quickly mitigate biofuel supply concerns while also alleviating inflationary pressures on goods transported by truck.

"NACS appreciates the leadership of Representative Mike Carey and the Congressional thought leaders who supported renewal of the Biodiesel Blenders' Credit, which is critical to securing a viable future for the advanced renewable fuels market," said NACS Deputy General Counsel Matt Durand. "This legislation reflects a proven policy for bolstering domestic production and reducing consumer costs, and we urge its prompt enactment by Congress."

A diverse group of stakeholders, including trucking fleets, shipping customers, and suppliers of home heating oil, support this policy because it lowers the price consumers pay to fuel their vehicles and heat their homes.

Biodiesel historically has been the most widely consumed biofuel for use in commercial trucking and represents the best opportunity to reduce carbon emissions from the nation's commercial trucking fleet for the foreseeable future.  

The Biodiesel Tax Credit lowers the price that truck drivers pay for diesel fuel, which in turn lowers the cost of shipping and therefore the price consumers pay for products that are moved by truck. Extending the biodiesel tax credit will safeguard the ability of motor carriers to reduce carbon emissions in the nation's existing commercial fleets while lowering fuel prices and the cost of goods for consumers.

About NATSO, SIGMA and NACS

NATSO is the trade association of America's travel plaza and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truck stop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS For more than 60 years, NACS has been recognized as the premiere association for convenience and fuel retailers. NACS has more than 1,000 retail member companies that cumulatively represent more than 200,000 stores in 50-plus countries, including 90,000 stores in the United States alone. The U.S. convenience store industry, with more than 152,000 stores nationwide selling fuel, food and merchandise, conducts 160 million transactions daily and had sales of $837 billion in 2024. For more information, visit convenience.org. Follow NACS on LinkedIn, Twitter, Facebook and Instagram.

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SOURCE NATSO, Inc.