United States 117th Congress Status: In Committee 1 D cosponsors

HR 3272 — Biodiesel, Renewable Diesel, and Alternative Fuels Extension Act of 2021

Last action — Referred to the House Committee on Ways and Means.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

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 Text

Sections of law this bill changes

3 sections in 2 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-121).

Normal taxes and surtaxes · 26 U.S.C. ch. 1 1 section
  • § 40A Biodiesel and renewable diesel used as fuel Amends

    26 U.S.C. § 40A

    The law today

    (a) General rule For purposes of section 38, the biodiesel fuels credit determined under this section for the taxable year is an amount equal to the sum of— (1) the biodiesel mixture credit, plus (2) the biodiesel credit, plus (3) in the case of an eligible small agri-biodiesel producer, the small agri-biodiesel producer credit. (b) Definition of biodiesel mixture credit, biodiesel credit, and small agri-biodiesel producer credit For purposes of this section— (1) Biodiesel mixture credit (A) In general The biodiesel mixture credit of any taxpayer for any taxable year is $1.00 for each gallon of biodiesel used by the taxpayer in the production of a qualified biodiesel mixture. (B) Qualified biodiesel mixture The term “qualified biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which— (i) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (ii) is used as a fuel by the taxpayer producing such mixture. (C) Sale or use must be in trade or business, etc. Biodiesel used in the production of a qualified biodiesel mixture shall be taken into account— (i) only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and (ii) for the taxable year in which such sale or use occurs. (D) Casual off-farm production not eligible No credit shall be allowed under this section with respect to any casual off-farm production of a qualified biodiesel mixture. (2) Biodiesel credit (A) In general The biodiesel credit of any taxpayer for any taxable year is $1.00 for each gallon of biodiesel which is not in a mixture with diesel fuel and which during the taxable year— (i) is used by the taxpayer as a fuel in a trade or business, or (ii) is sold by the taxpayer at retail to a person and placed in the fuel tank of such person’s vehicle. (B) User credit not to apply to biodiesel sold at retail No credit shall be allowed under subparagraph (A)(i) with respect to any biodiesel which was sold in a retail sale described in subparagraph (A)(ii). (3) Certification for biodiesel No credit shall be allowed under paragraph (1) or (2) of subsection (a) unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer or importer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product. (4) Small agri-biodiesel producer credit (A) In general The small agri-biodiesel producer credit of any eligible small agri-biodiesel producer for any taxable year is 20 cents for each gallon of qualified agri-biodiesel production of such producer. (B) Qualified agri-biodiesel production For purposes of this paragraph, the term “qualified agri-biodiesel production” means any agri-biodiesel which is produced by an eligible small agri-biodiesel producer in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii), and which during the taxable year— (i) is sold by such producer to another person— (I) for use by such other person in the production of a qualified biodiesel mixture in such other person’s trade or business (other than casual off-farm production), (II) for use by such other person as a fuel in a trade or business, or (III) who sells such agri-biodiesel at retail to another person and places such agri-biodiesel in the fuel tank of such other person, or (ii) is used or sold by such producer for any purpose described in clause (i). (C) Limitation The qualified agri-biodiesel production of any producer for any taxable year shall not exceed 15,000,000 gallons. (D) Coordination with clean fuel production credit The credit determined under this paragraph with respect to any gallon of fuel shall be in addition to any credit determined under section 45Z with respect to such gallon of fuel. (c) Coordination with credit against excise tax The amount of the credit determined under this...

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Abatements, credits, and refunds · 26 U.S.C. ch. 65 2 sections
  • § 6426 Credit for alcohol fuel, biodiesel, and alternative fuel mixtures Amends

    26 U.S.C. § 6426 — at 6426(c), 6426(d), and 6426(e)

    The law today

    (a) Allowance of credits There shall be allowed as a credit— (1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), (e), and (k), and (2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d). No credit shall be allowed in the case of the credits described in subsections (d) and (e) unless the taxpayer is registered under section 4101. (b) Alcohol fuel mixture credit (1) In general For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer. (2) Applicable amount For purposes of this subsection— (A) In general Except as provided in subparagraphs (B) and (C), the applicable amount is— (i) in the case of calendar years beginning before 2009, 51 cents, and (ii) in the case of calendar years beginning after 2008, 45 cents. (B) Mixtures not containing ethanol In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents. (C) Reduction delayed until annual production or importation of 7,500,000,000 gallons In the case of any calendar year beginning after 2008, if the Secretary makes a determination described in section 40(h)(3)(B) with respect to all preceding calendar years beginning after 2007, subparagraph (A)(ii) shall be applied by substituting “51 cents” for “45 cents”. (3) Alcohol fuel mixture For purposes of this subsection, the term “alcohol fuel mixture” means a mixture of alcohol and a taxable fuel which— (A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (B) is used as a fuel by the taxpayer producing such mixture. For purposes of subparagraph (A), a mixture produced by any person at a refinery prior to a taxable event which includes ethyl tertiary butyl ether or other ethers produced from alcohol shall be treated as sold at the time of its removal from the refinery (and only at such time) to another person for use as a fuel. (4) Other definitions For purposes of this subsection— (A) Alcohol The term “alcohol” includes methanol and ethanol but does not include— (i) alcohol produced from petroleum, natural gas, or coal (including peat), or (ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants). Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol. (B) Taxable fuel The term “taxable fuel” has the meaning given such term by section 4083(a)(1). (5) Volume of alcohol For purposes of determining under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 2 percent of the volume of such alcohol (including denaturants). (6) Termination This subsection shall not apply to any sale, use, or removal for any period after December 31, 2011. (c) Biodiesel mixture credit (1) In general For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer. (2) Applicable amount For purposes of this subsection, the applicable amount is $1.00. (3) Biodiesel mixture For purposes of this section, the term “biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which— (A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (B) is used as a fuel by the taxpayer producing suc...

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  • § 6427 Fuels not used for taxable purposes Amends

    26 U.S.C. § 6427 — at 6427(e)(6)

    The law today

    (a) Nontaxable uses Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to— (1) the amount of tax imposed on the sale of the fuel to him, reduced by (2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel. (b) Intercity, local, or school buses (1) Allowance Except as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in— (A) furnishing (for compensation) passenger land transportation available to the general public, or (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)), the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be. (2) Reduction in refund in certain cases (A) In general Except as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be. (B) Exception for school bus transportation Subparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B). (C) Exception for certain intracity transportation Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation— (i) which is available to the general public, and (ii) which is scheduled and along regular routes, but only if such bus is a qualified local bus. (D) Qualified local bus For purposes of this paragraph, the term “qualified local bus” means any local bus— (i) which has a seating capacity of at least 20 adults (not including the driver), and (ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation. (3) Limitation in case of nonscheduled intercity or local buses Paragraph (1)(A) shall not apply in respect of fuel used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver). (4) Refunds for use of diesel fuel in certain intercity buses With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor— (A) is registered under section 4101, and (B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1). (c) Use for farming purposes Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) is used on a farm for farming purposes (within the meaning of section 6420(c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or ...

    29 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

How this bill changes current law

12 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill extends the biodiesel and renewable diesel incentives through 2025 and implements a phasedown of the tax credits.

  • Section 40A

    December 31, 2022 → December 31, 2025

    The deadline for the biodiesel and renewable diesel tax credit is extended to December 31, 2025.

  • Section 40A

    $1.00 → $0.75

    Starting in 2023, the tax credit amount for biodiesel and renewable diesel will be reduced to $0.75.

  • Section 40A

    $1.00 → $0.50

    For taxable years beginning after 2023, the tax credit for biodiesel and renewable diesel will be further reduced to $0.50.

  • Section 6426(c)

    December 31, 2022 → December 31, 2025

    The deadline for the excise tax credit is extended to December 31, 2025.

  • Section 6427(e)(6)

    December 31, 2022 → December 31, 2025

    The deadline for outlay payments related to biodiesel is extended to December 31, 2025.

  • Section 6426(c)

    ($0.75 for fuel sold or used in 2023 and $0.50 for fuel sold or used after 2023)

    The excise tax credit will be phased down to $0.75 for 2023 and $0.50 for subsequent years.

  • Section 6426(d)

    December 31, 2021 → December 31, 2025

    The alternative fuels excise tax credit deadline is extended to December 31, 2025.

  • Section 6427(e)(6)

    December 31, 2021 → December 31, 2025

    The deadline for outlay payments related to alternative fuels is extended to December 31, 2025.

  • Section 6426(d)

    50 cents → 37.5 cents for fuel sold or used in 2023

    The alternative fuel credit amount will be reduced to 37.5 cents for fuel sold or used in 2023.

  • Section 6426(d)

    25 cents for fuel sold or used after 2023

    The alternative fuel credit will be further reduced to 25 cents for fuel sold or used after 2023.

  • Section 6426(e)

    50 cents → 37.5 cents for fuel sold or used in 2023

    The alternative fuel mixture credit amount will be reduced to 37.5 cents for fuel sold or used in 2023.

  • Section 6426(e)

    25 cents for fuel sold or used after 2023

    The alternative fuel mixture credit will be further reduced to 25 cents for fuel sold or used after 2023.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Ways and Means.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation energy
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Frequently asked questions

What does HR 3272 do?
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.
Who sponsors HR 3272?
HR 3272 is sponsored by Costa, Jim (Democratic).
What is the current status of HR 3272?
This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 3272?
Track HR 3272 free on One Click Politics — get push/email alerts when it moves.

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