New Study Demonstrates Biodiesel Tax Credit's Benefits for Consumers

April 15, 2026

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(NATSO/PR Newswire) A new independent study commissioned by NATSO, representing America's travel centers and truck stops, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) finds that the Section '40A' Biodiesel Blenders' Tax Credit (BTC) delivers significantly more value across the entire biofuel supply chain than its replacement, the 'Section 45Z' Clean Fuel Production Credit.

The report, prepared by GlobalData, a leading energy research and analytics firm, finds that nearly 70 percent of the Biodiesel Tax Credit value flowed through the supply chain to blenders and consumers, ranking it among the most consumer-friendly biofuel policies.

The report titled, "Tax Credit Impact on U.S. Biofuels," analyzes the impact of biofuel tax credits and how their value is shared throughout the supply chain to the benefit of farmers and consumers.

"This study highlights that the Biodiesel Tax Credit remains one of the most consumer-oriented tax policies, with the vast majority of its value trickling down into lower prices at the pump," said NATSO President and CEO Max McBrayer. "This reaffirms our industry's position that reinstating the Biodiesel Tax Credit represents a common-sense solution for ensuring stable fuel supply options while also helping to lower fuel prices at the pump."

Conducted by GlobalData, the research examined the '40A' Biodiesel Benders' Tax Credit that expired at the end of 2024, and the existing 'Section 45Z' Clean Fuel Production Credit to compare how these tax credits influence demand for biofuels and ultimately impact the market.

"The study's findings confirm what fuel retailers see every day: reducing fuel costs at the point of blending means greater savings at the pump," said Matt Durand, Deputy General Counsel for NACS. "The 40A credit is a transparent and market-tested way to help lower diesel prices, delivering real value for American families and small businesses."

Using independent data, GlobalData found that as little as 20 percent of the 'Section 45Z' tax credit value flows through the supply chain to blenders and consumers.

When the Biodiesel Tax Credit was in place, between 50 percent and 70 percent of the credit value passed to blenders and consumers. By comparison, under the existing 'Section 45Z' Clean Fuel Production Tax Credit, just 20 percent to 40 percent of the credit value flows to blenders and consumers with producers retaining up to 80 percent of the value.

NATSO, SIGMA and NACS, which represent 90 percent of fuel sold at retail, urge Congress to quickly reinstate the Biodiesel Tax Credit. The Biodiesel Blenders' Tax Credit represents a significant opportunity to help stabilize diesel prices and strengthen demand for renewable fuels – enhancing supply options and alleviating fuel price pressures caused by today's market volatility and geopolitical risks.

As surrogates for the consumer, when fuel retailers pay less to buy and blend biofuel, they are incentivized to pass those savings on to customers in the form of lower prices at the pump. The structure of the '45Z' credit makes it impossible for fuel retailers to access savings and extend those benefits to consumers.

The longstanding '40A' Biodiesel Blenders' Tax Credit was replaced in 2025 by the 'Section 45Z' production credit. The simple $1 per gallon blender credit was eligible for all biomass-based diesel. The 'Section 45Z' credit, by comparison, is a complex income tax credit that varies based on greenhouse gas emissions and must be redeemed by producers against their annual tax filings.

Download the Executive Summary here.

About NATSO, SIGMA, and NACS

NATSO is the trade association representing America's travel center and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel center, truck stop and off-highway fuel retail industries; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. For more information visit NATSO.com. Follow NATSO on Facebook; Instagram; LinkedIn; and X. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS For more than 60 years, NACS has been recognized as the premiere association for convenience and fuel retailers. NACS has more than 1,000 retail member companies that cumulatively represent more than 200,000 stores in 50-plus countries, including 90,000 stores in the United States alone. The U.S. convenience store industry, with more than 152,000 stores nationwide selling fuel, food and merchandise, conducts 160 million transactions daily and had sales of $837 billion in 2024. For more information, visit convenience.org. Follow NACS on LinkedIn, Twitter, Facebook and Instagram. READ MORE

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Fuel Retailers Applaud Legislation to Extend Biodiesel Blenders' Tax Credit (NATSO/PR Newswire)

Excerpt from NATSO/PR Newswire: NATSO, representing America's travel centers and truck stops, SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS) commended Rep. Mike Carey (R-Ohio) for introducing the bipartisan "Biodiesel Tax Credit Extension Act of 2026."

The "Biodiesel Tax Credit Extension Act of 2026" would extend the $1 per gallon biodiesel tax credit through 2029 at the blender level. Taxpayers would be able to choose between claiming the Biodiesel Tax Credit or the '45Z' Clean Fuel Production Credit.

The bipartisan legislation is co-sponsored by U.S. Representatives Salud Carbajal (D-Calif.), Lou Correa (D-Calif.), Jim Costa (D-Calif.), Ashley Hinson (R-Iowa), Dusty Johnson (R-S.D.), Mike Kelly (R-Pa.), Darin LaHood (R-Ill.), Tracey Mann (R-Kan.), Mariannette Miller-Meeks (R-Iowa) and Claudia Tenney (R-N.Y.).

Extending the Biodiesel Blenders' Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, 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 "Biodiesel Extension Act of 2026," implementing a concrete step Congress 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, Executive Vice President of Government Affairs for NATSO and SIGMA. "We commend Representative 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 Biodiesel Blenders' Tax Credit. We urge Congress to extend this successful policy as soon as possible."

"NACS appreciates the leadership of Representative Carey and Members of Congress in supporting renewal of the Biodiesel Blenders' Credit, which is critical to securing a viable future for advanced renewable fuels," said NACS Deputy General Counsel Matt Durand. "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 Biodiesel Tax Credit 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 Biodiesel Blenders' Tax Credit provided transparency into the value across the supply chain that allowed fuel retailers to access savings and extend those benefits to consumers.

The Biodiesel Tax Credit also lowered the cost of all consumer goods moved by truck by lowering fuel costs for commercial trucking fleets. When the Biodiesel Tax Credit was in place, $0.60 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.

About NATSO, SIGMA, and NACS

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segments of the industry while providing information and services to members. For more information visit SIGMA.org.

WHAT PEOPLE ARE SAYING:

American Trucking Associations

"America's supply chain depends on reliable access to affordably priced fuels," said American Trucking Associations Chief Advocacy & Public Affairs Officer Henry Hanscom. "Lower-carbon, cost-competitive options like biodiesel and renewable diesel are an essential piece of the puzzle. ATA commends Rep. Carey for introducing legislation that will expand the availability of these proven energy sources at the pump, giving motor carriers the certainty they need to continue to deliver three-quarters of the nation's freight."

Energy Marketers of America

"The Energy Marketers of America strongly supports the immediate reinstatement of the $1-per-gallon Biodiesel Blenders' Tax Credit," said Rob Underwood, President, Energy Marketers of America. "This proven incentive has encouraged greater blending by marketers, bringing Bioheat® to the market and delivering meaningful savings to consumers on their heating bills. Additionally, the Biodiesel Blenders' Tax Credit has helped bring renewable diesel fuel to the market, which is compatible with existing underground storage tanks and therefore reduces prices at the pump."

NATSO, Representing Truck Stops and Travel Centers

"Extending the Biodiesel Blenders' Tax Credit would immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, helping to stabilize fuel supply options and mitigate fuel costs for consumers," said NATSO President and CEO Max McBrayer. "We commend Representative Carey and the Members of Congress who recognize the critical role that renewable diesel and biodiesel play in ensuring stable fuel supplies while offering consumers a more affordable alternative to conventional fuel. We urge Congress to extend this successful policy as soon as possible."

National Association of Convenience Stores

"NACS appreciates the leadership of Representative Carey and Members of Congress in supporting renewal of the Biodiesel Blenders' Credit, which is critical to securing a viable future for advanced renewable fuels," said NACS Deputy General Counsel Matt Durand. "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."

Sustainable Advanced Biofuel Refiners (SABR)

"The Sustainable Advanced Biofuel Refiners (SABR) Coalition applauds Representative Mike Carey and other sponsors for reintroducing legislation to reinstate the Biodiesel Blender's Tax Credit. This legislation is important because '45Z' is still creating market uncertainty around GREET and ILUC. A domestic biodiesel tax credit that directly benefits American farmers, small businesses, and consumers can provide immediate supply and pricing stability to volatile energy markets. For SABR's full statement see www.sabrcoalition.org."

SIGMA: America's Leading Fuel Marketers

"Well-functioning incentives like the biodiesel tax credit make it economically feasible for fuel marketers to buy and blend biofuels," said Matt Ports, President of Ohio-based Ports Petroleum Co. and Executive Committee President for SIGMA: America's Leading Fuel Marketers. "When fuel marketers can access savings on fuel, we pass these cost savings on to our customers. The biodiesel tax credit has a meaningful impact on our ability to sell fuel to our customers at the lowest possible price while also providing consumer choice in fueling options. We appreciate Congressman Carey for demonstrating much needed leadership to help ensure stability and certainty within the biofuels market."

National Energy & Fuels Institute (NEFI)

"America's heating oil dealers deliver warmth and comfort to nearly five million homes, and this past winter was a powerful reminder of how essential affordable, reliable fuel supplies are to the families they serve," said Jim Collura, President and CEO of NEFI. "Reinstating the biodiesel and renewable diesel blenders' tax credit would deliver immediate relief at a time when geopolitical instability continues to put upward pressure on energy costs. The 40A credit is a proven tool that supports our mostly small, multigenerational family-owned businesses as they increase blends of renewable liquid heating fuels, providing a cost-effective path to lower emissions while keeping home energy affordable. We urge Congress to act swiftly on this common sense, bipartisan measure."

Truckload Carriers Association

"Alternative fuels such as renewable diesel and biodiesel have become ingrained in the economic fabric of fleets striving to lower emissions while managing supply chain costs," said Jim Mullen, President and CEO for the Truckload Carriers Association. "The cost-effective and dependable movement of freight hinges in large part on access to affordable and reliable fuel supplies. The Biodiesel Blenders' Tax Credit is a critical piece of that equation. Lower costs for trucking translate to real savings for consumers on all goods moved by truck."

Contact: Tiffany Wlazlowski, twlazlowski@natso.com READ MORE