Biodiesel Tax Credit Extension Act of 2025

This bill proposes to extend several key biofuel tax incentives by amending the Internal Revenue Code of 1986. Specifically, it extends the expiration date for the biodiesel fuels credit and the biodiesel mixture credit from December 31, 2024, to December 31, 2026. These extensions apply to fuel sold or used after December 31, 2024, providing continued financial support for biodiesel production and use. Furthermore, the legislation extends the alcohol fuel credit for second-generation biofuel production , moving its expiration from January 1, 2025, to January 1, 2027. A crucial aspect of this bill is the inclusion of "denial of double benefit" clauses across all extended credits. These clauses ensure that taxpayers cannot claim both these extended credits and the new clean fuel production credit under Section 45Z(a) for the same fuel, preventing overlapping subsidies.