Small Agri-Biodiesel Producer Credit

Credit Type

Production
Tax Credit

Technology

Fuels

Eligibility

Small agri-biodiesel producers (≤60M gal/yr) producing biodiesel from virgin oils

Base Rate

$0.20/gallon

Full Rate

$0.20/gallon
(no PWA
requirement)

Bonus Adders

N/A

Duration

Fuel produced and sold between 6/30/2025 and 12/31/2026

Period of Availability

Available for fuels sold between 6/30/2025 and 12/31/2026 (OBBBA extension).

Transferable (§6418)

Yes

Key Limitations & Notes

  • Producer cannot exceed 60M gallons/year
  • Must be from virgin oils
  • Not inflation-adjusted
  • New OBBBA-extended credit