President Trump and Congress renewed a $1-per-gallon biodiesel tax credit that expired in 2017 and is now renewed until Dec. 31, 2022.
A taxpayer that delivers pure, unblended biodiesel (B100) as an on-road fuel in their trade or business may be eligible for an incentive in the amount of $1.00 per gallon of biodiesel, agri-biodiesel, or renewable diesel, according to the U.S. Department of Energy. The incentive is allowed as a credit against the taxpayer's income tax liability.
Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product's biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency (EPA); and confirms that the product meets the requirements of ASTM specification D6751, which covers biodiesel fuel blend stock, B100, in Grades S15 and S500 for use as a blend component with middle distillate fuels.
Renewable diesel is defined as liquid fuel derived from biomass that meets EPA's fuel registration requirements and ASTM specifications D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass.