Fuel Retail Associations Propose Extension of Biodiesel Tax Credit Legislation

On April 27, 2026, significant strides were made in supporting the biodiesel industry when NATSO, which represents America’s travel centers and truck stops, along with SIGMA and the National Association of Convenience Stores (NACS), praised U.S. Representative Mike Carey for introducing the bipartisan "Biodiesel Tax Credit Extension Act of 2026." This proposed legislation aims to maintain the $1 per gallon biodiesel tax credit until 2029, with the flexibility for taxpayers to choose between claiming this credit or the '45Z' Clean Fuel Production Credit.

The bipartisan nature of this legislation, with co-sponsorship from various representatives across party lines, highlights the widespread recognition of the importance of biodiesel in the nation's energy supply chain. The introduction of this act comes at a crucial time when geopolitical factors have led to heightened uncertainty in global oil markets, consequently driving fuel prices upwards. Extending the biodiesel tax credit is seen as a way to encourage fuel retailers across the nation to blend more biodiesel, which could enhance fuel supply stability and help mitigate costs for consumers.

NATSO, SIGMA, and NACS are calling on Congress to expedite the enactment of this act, emphasizing its capacity to lower costs for both truck drivers and consumers alike. “The Biodiesel Blenders' Tax Credit is a proven policy that significantly benefits consumers by reducing operating costs for businesses, increasing demand for crops from farmers, and ultimately lowering household fuel expenses,” stated David Fialkov, the Executive Vice President of Government Affairs for NATSO and SIGMA.

The potential impacts of this legislation could be vast. When the biodiesel tax credit was previously active, studies indicated that between 50% and 70% of the credit value was transmitted through to consumers and farmers, ultimately enabling fuel retailers to lower prices at the pump. The transparent structure of the $1 per gallon biodiesel blenders’ tax credit allowed these savings to be easily recognized and implemented across the supply chain.

Moreover, the benefits of the biodiesel tax credit extend beyond just fuel costs, as commercial trucking fleets experience a decline in operational expenses which allows for lower prices on consumer goods transported by road. During the period when the biodiesel tax credit was active, the value reaching the downstream diesel supply chain was noted to be around $0.60 per gallon.

Various industry stakeholders have also voiced their support for the extension of the Biodiesel Tax Credit. The American Trucking Associations, representing motor carriers, reinforced the importance of ensuring access to affordable and lower-carbon fuel options, arguing that this proposal would facilitate cost-effective transportation solutions for freight across the country. Similarly, the Energy Marketers of America and numerous small businesses in the field have echoed these sentiments, highlighting how reinstating the tax credit would provide immediate relief and stability in pricing for consumers.

As discussions progress, the urgency for Congress to act on the Biodiesel Tax Credit Extension Act of 2026 is being underscored by various organizations. They believe this straightforward, bipartisan effort could yield significant economic benefits while supporting the continued growth of renewable energy sources within the fuel market.

In conclusion, the ongoing dialogue regarding the Biodiesel Tax Credit represents a pivotal moment for fuel retailers, consumers, and farmers alike, aiming for a future where stability in fuel supplies can coincide with lower costs at the pump. NATSO, SIGMA, and NACS are committed to working alongside lawmakers to usher in policies that not only fortify the fuel industry but also provide real, tangible benefits to American consumers and businesses.

About NATSO, SIGMA, and NACS

NATSO

NATSO, established in 1960, is the trade association representing America’s travel centers and truck stop industry. The organization focuses on legislative matters, provides relevant industry information, and fosters business improvements for its members.

SIGMA

Founded in 1958, SIGMA represents leading fuel marketers and chain retailers in the U.S. and Canada. The organization promotes the interests of its members and serves as an informational resource for innovations in the fuel marketing sector.

NACS

Recognized for more than six decades, NACS is the leading association for convenience and fuel retailers, representing over 1,000 member companies worldwide and advocating for the interests of the fuel industry.