Fuel retailers welcome legislation to extend biodiesel blenders tax credit

NATSO, representing America’s travel centers and truck stops, SIGMA: America’s Leading Fuel Marketers, and the National Association of Convenience Stores commended Rep. Mike Carey, R-Ohio, for introducing the bipartisan Biodiesel Tax Credit Extension Act of 2026.

The bill would extend the $1-per-gallon biodiesel tax credit (BTC) through 2029 at the blender level.

Taxpayers would be able to choose between claiming the BTC or the section 45Z clean fuel production credit.

Extending the BTC would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, according to the fuel-retailer groups, 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 BTC extension, implementing a concrete step the Legislature 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, the executive vice president of government affairs for NATSO and SIGMA. “We commend Rep. 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 BTC. We urge Congress to extend this successful policy as soon as possible.”

NACS Deputy General Counsel Matt Durand added, “NACS appreciates the leadership of Rep. Carey and members of Congress in supporting renewal of the BTC, which is critical to securing a viable future for advanced renewable fuels. 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 BTC 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 BTC provided transparency into the value across the supply chain that allowed fuel retailers to access savings and extend those benefits to consumers, the groups noted.

“The BTC also lowered the cost of all consumer goods moved by truck by lowering fuel costs for commercial trucking fleets,” the fuel retailers pointed out. “When the BTC was in place, 60 cents 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.”