H.R. 3272 – Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021

AI-Generated Summary

Updated February 8, 2026 at 3:08 AM UTC

The bill extends federal tax incentives for biodiesel, renewable diesel, and other alternative fuels through the end of 2025. It also reduces the credit amounts over time, lowering them after 2022. The changes affect fuel producers, sellers, and taxpayers who claim these credits.

Key Provisions

Extends the biodiesel and renewable diesel income tax credit to December 31, 2025, with a phasedown to $0.75 per gallon in 2023 and $0.50 after 2023.
Extends biodiesel and renewable diesel excise tax credits to December 31, 2025, and phases them down to $0.75 per gallon in 2023 and $0.50 thereafter.
Extends alternative fuel excise tax credits to December 31, 2025, and phases them down to 37.5 cents per gallon in 2023 and 25 cents after 2023.
All extensions and phasedown provisions apply to fuel sold or used after December 31, 2021.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 17, 2021

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HouseIntro Referral

Introduced in House

May 17, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 17, 2021

Bill Text

Latest available legislative text

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Introduced in HouseIssued May 17, 2021

I

117th CONGRESS

1st Session

H. R. 3272

IN THE HOUSE OF REPRESENTATIVES

May 17, 2021

Mr. Costa (for himself and Mr. Valadao) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to extend biodiesel and renewable diesel incentives, and for other purposes.

1.

Short title

This Act may be cited as the Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021.

2.

Extension of biodiesel and renewable diesel incentives

(a)

Income tax credit

(1)

Extension

Subsection (g) of section 40A of the Internal Revenue Code of 1986 is amended by striking December 31, 2022 and inserting December 31, 2025.

(2)

Phasedown

Subsection (b) of section 40A of such Code is amended by adding at the end the following:

(5)

Phasedown

In the case of taxable years beginning after 2022, paragraphs (1)(A) and (2)(A) shall each be applied by substituting for $1.00 the following:

(A)

$0.75 for taxable years beginning in 2023, and

(B)

$0.50 for taxable years beginning after 2023.

.

(b)

Excise tax incentives

(1)

Credit

Paragraph (6) of section 6426(c) of such Code is amended by striking December 31, 2022 and inserting December 31, 2025.

(2)

Payments

Subparagraph (B) of section 6427(e)(6) of such Code is amended by striking December 31, 2022 and inserting December 31, 2025.

(3)

Phasedown

Paragraph (2) of section 6426(c) of such Code is amended by inserting before the period at the end the following: ($0.75 for fuel sold or used in 2023 and $0.50 for fuel sold or used after 2023).

(c)

Effective date

The amendments made by this section shall apply to fuel sold or used after December 31, 2021.

3.

Extension of excise tax credits relating to alternative fuels

(a)

Extension of alternative fuels excise tax credits

(1)

In general

Paragraph (5) of section 6426(d) and paragraph (3) of section 6426(e) of the Internal Revenue Code of 1986 are each amended by striking December 31, 2021 and inserting December 31, 2025.

(2)

Outlay payments for alternative fuels

Subparagraph (C) of section 6427(e)(6) of such Code is amended by striking December 31, 2021 and inserting December 31, 2025.

(3)

Phasedown

(A)

Alternative fuel credit

Paragraph (1) of section 6426(d) of such Code is amended by inserting (37.5 cents for fuel sold or used in 2023 and 25 cents for fuel sold or used after 2023) after 50 cents.

(B)

Alternative fuel mixture credit

Paragraph (1) of section 6426(e) of such Code is amended by inserting (37.5 cents for fuel sold or used in 2023 and 25 cents for fuel sold or used after 2023) after 50 cents.

(b)

Effective date

The amendments made by this section shall apply to fuel sold or used after December 31, 2021.