HR3137-119

1. Short title This Act may be cited as the Biodiesel Tax Credit Extension Act of 2025.

2. Extension of biofuel tax incentives Section 40A(g) of the Internal Revenue Code of 1986 is amended by striking 2024 and inserting 2026. Section 40A of such Code is amended— by redesignating subsection (g) (as amended) as subsection (h), and by inserting after subsection (f) the following new subsection: In the case of any fuel with respect to which a credit is allowed under section 45Z(a) for any taxable year, the amount determined under this section with respect to such fuel shall be zero. Section 6426(c)(6) of such Code is amended by striking 2024 and inserting 2026. Section 6426(c) of such Code is amended by adding at the end the following new paragraph: In the case of any fuel with respect to which a credit is allowed under section 45Z(a) for any taxable year, the applicable amount determined under this paragraph (2) with respect to such fuel shall be zero. Section 6427(e)(6)(B) of such Code is amended by striking 2024 and inserting 2026. Section 40(b) of such Code is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph: No credit shall be determined under this paragraph with respect to fuel with respect to which a credit was allowed under section 45Z(a). Section 40(b)(7)(J)(i) of such Code (as so redesignated) is amended by striking January 1, 2025 and inserting January 1, 2027. The amendments made subsections (a) and (b) shall apply to fuel sold or used after December 31, 2024. The amendments made by subsection (c) shall apply to qualified second generation biofuel (as defined in section 40(b)(6)(C) of such Code) production occurring after December 31, 2024. (g)Denial of Double BenefitIn the case of any fuel with respect to which a credit is allowed under section 45Z(a) for any taxable year, the amount determined under this section with respect to such fuel shall be zero.. (7)Denial of double benefitIn the case of any fuel with respect to which a credit is allowed under section 45Z(a) for any taxable year, the applicable amount determined under this paragraph (2) with respect to such fuel shall be zero.. (6)Coordination with clean fuel production creditNo credit shall be determined under this paragraph with respect to fuel with respect to which a credit was allowed under section 45Z(a)..