Washington, D.C. – April 28, 2026 –
Rep. Mike Carey (R-OH) introduced the
“Biodiesel Tax Credit Extension Act of 2026,”
bipartisan legislation to restore the Section
40A biodiesel blenders’ tax credit at $1 per
gallon through December 31, 2029. Under the
bill, eligible taxpayers could choose to claim
either the restored blenders’ credit or the 45Z
Clean Fuel Production Credit, whichever best
aligns with their business model. The measure
would not apply retroactively.
Energy
Marketers of America (EMA) strongly supports the
legislation, emphasizing its role in lowering
fuel costs for consumers while accelerating the
deployment of cleaner-burning, renewable fuels
across the country.
The $1-per-gallon
biodiesel blenders’ tax credit is essential to
delivering more affordable, lower-carbon fuel
options. The bill enables energy marketers to
continue expanding access to BioHeat® fuel
blends ranging from B5 to B20 and a practical,
incremental pathway toward higher biodiesel
adoption alongside next-generation heating
technologies.
At a time of sustained
energy price volatility and persistent
inflationary pressures, the legislation would
help stabilize fuel costs for households and
businesses that rely on home heating oil,
diesel, and related products. It also reinforces
continued growth in the renewable fuels sector,
including renewable diesel, which is fully
compatible with existing fuel infrastructure,
including underground storage tanks and
conventional heating systems.
The
legislation enjoys broad bipartisan support in
the House of Representatives. Original
cosponsors include:
- Republicans: Reps. Andrew
Garbarino (NY), Ashley Hinson (IA), Dusty
Johnson (SD), Mike Kelly (PA), Darin LaHood
(IL), Tracey Mann (KS), Claudia Tenney (NY), and
Mariannette Miller-Meeks (IA)
- Democrats:
Reps. Salud Carbajal (CA), Lou Correa (CA), and
Jim Costa (CA)
EMA urges Congress to act
swiftly to pass the Biodiesel Tax Credit
Extension Act of 2026, underscoring the
importance of policy certainty to sustain
domestic renewable fuel production, support
small businesses, and deliver tangible savings
to American consumers.
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