Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021

Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021

This bill extends and modifies the tax credits for biodiesel, renewable diesel, and alternative fuels.

The bill extends through 2025 (1) the income tax credit for biodiesel and renewable diesel used as fuel, (2) the excise tax credit for biodiesel mixtures, (3) the excise tax credit for alternative fuels, (4) the excise tax credit for alternative fuel mixtures, and (5) the payments that are equivalent to the excise tax credits for biodiesel mixtures and alternative fuels.

Beginning in 2023, the bill phases down the credits for biodiesel, biodiesel mixtures, alternative fuels, and alternative fuel mixtures by reducing the credits by specified amounts.

Bill 117 HR 3272, also known as the Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to extend certain tax credits and incentives for the production and use of biodiesel, renewable diesel, and other alternative fuels.

Specifically, the bill would extend the biodiesel and renewable diesel tax credit through 2025. This tax credit provides a financial incentive for the production of these cleaner-burning fuels, which can help reduce greenhouse gas emissions and promote energy independence. Additionally, the bill would extend the alternative fuel refueling property credit through 2025, which encourages the installation of infrastructure for alternative fuel vehicles.

Supporters of the bill argue that these tax credits are crucial for promoting the use of cleaner fuels and reducing the country's reliance on fossil fuels. They believe that extending these incentives will help spur investment in the renewable energy sector and create jobs in the green economy. Opponents of the bill may argue that these tax credits are costly and unnecessary, and that the government should not be picking winners and losers in the energy market. They may also raise concerns about the potential impact on the federal budget and the overall effectiveness of these incentives in promoting sustainable energy practices. Overall, the Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021 is a significant piece of legislation that aims to support the production and use of cleaner fuels in the United States. Its passage could have far-reaching implications for the energy industry and the environment.