# Biodiesel Tax Credit Extension Act of 2024

This bill extends tax credits that help make biodiesel fuel more affordable and competitive. Biodiesel is a renewable fuel made from vegetable oils, animal fats, or recycled cooking oil that can be blended with regular diesel or used on its own. Right now, the government offers tax credits to producers and sellers of biodiesel to encourage its use as a cleaner alternative to petroleum diesel. Without action, these credits were set to expire at the end of 2024, so this bill simply extends them through 2025.

The bill affects biodiesel producers, fuel blenders, and ultimately consumers who use diesel fuel. When companies produce biodiesel or mix it with regular diesel, they can claim a tax credit that reduces their tax bill. These savings often get passed along to consumers through lower fuel prices. By extending the credit for another year, the bill keeps biodiesel competitive in the fuel market and supports the biodiesel industry, which includes farmers who supply the raw materials and fuel producers across the country.

There's one important rule built into the bill: companies can't claim both the biodiesel tax credit and a newer, broader clean fuel credit called the "45Z credit" for the same fuel. This prevents double-dipping and ensures the government's support goes as far as possible. The changes take effect for fuel sold or used after December 31, 2024, meaning the extended credits apply starting in 2025. Overall, this is a straightforward extension of existing support for renewable diesel fuel rather than a major policy change.