To amend the Internal Revenue Code of 1986 to temporarily reinstate the biodiesel fuels credit, and for other purposes.
Legislative Progress
IntroducedMrs. Blackburn introduced the following bill; which was read twice …
Summary
What This Bill Does
The CROP Act (Consumer Relief and Opportunities for Producers Act) extends the federal biodiesel tax credit through May 31, 2026. This credit, which was set to expire on December 31, 2024, provides financial incentives for producing and blending biodiesel and renewable diesel fuels. The bill also prevents "double-dipping" by ensuring companies cannot claim both this credit and the newer clean fuel production credit (Section 45Z) on the same fuel.
Who Benefits and How
Biodiesel and renewable diesel producers are the primary beneficiaries, receiving continued access to a $1-per-gallon tax credit that directly improves their profit margins. Soybean farmers, animal fat suppliers, and other agricultural feedstock producers benefit from sustained demand for their products as biodiesel inputs. Fuel blenders and distributors who mix biodiesel with petroleum diesel can also claim excise tax credits, improving the economics of biodiesel blending.
Who Bears the Burden and How
The Federal Treasury bears the cost through reduced tax revenue from the continued credits. Taxpayers indirectly fund this subsidy. Companies hoping to claim both the biodiesel credit and the newer Section 45Z clean fuel credit on the same fuel will be prevented from doing so under the new "no double benefit" rule.
Key Provisions
- Extends the Section 40A biodiesel fuels tax credit expiration from December 31, 2024 to May 31, 2026
- Extends the Section 6426 excise tax credit for biodiesel fuel mixtures through May 31, 2026
- Extends the Section 6427 biodiesel payment/refund provisions through May 31, 2026
- Adds a "no double benefit" rule preventing taxpayers from claiming both the 40A credit and the 45Z clean fuel production credit on the same fuel
- Amendments apply to fuel used or sold after November 30, 2025
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Temporarily reinstates the biodiesel fuels tax credit (Section 40A) through May 31, 2026, extending a tax incentive that was set to expire on December 31, 2024, while preventing double benefits with the Section 45Z clean fuel credit.
Policy Domains
Legislative Strategy
"Bridge gap between expiring biodiesel tax credit (40A) and new clean fuel credit (45Z) by extending 40A through May 2026 while preventing taxpayers from claiming both credits on the same fuel"
Likely Beneficiaries
- Biodiesel producers
- Renewable diesel producers
- Soybean farmers and agricultural feedstock suppliers
- Fuel blenders and distributors
- Biodiesel refineries
Likely Burden Bearers
- Federal Treasury (reduced tax revenue)
- Taxpayers (indirect cost of tax expenditure)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
Tax credit under IRC Section 40A providing incentives for biodiesel and renewable diesel production and use
Tax credit under IRC Section 45Z for clean fuel production, enacted under the Inflation Reduction Act
Excise tax credit for fuel blenders mixing biodiesel with petroleum diesel
Refund provisions for excise taxes on fuels, including biodiesel payment provisions
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology