New Study Shows Biodiesel Tax Credit Benefits Consumers

Independent analysis finds the Biodiesel Blenders' Tax Credit delivers more value to consumers than the Clean Fuel Production Credit

Apr. 14, 2026 at 9:02pm

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A minimalist composition of overlapping triangles and rectangles in shades of blue, yellow, and red, conceptually illustrating the economic impacts of biofuel tax policies.A visual representation of how biofuel tax credits influence the supply chain and consumer fuel prices.Alexandria Today

A new independent study commissioned by NATSO, SIGMA, and NACS finds that the Section '40A' Biodiesel Blenders' Tax Credit (BTC) delivers significantly more value across the entire biofuel supply chain than its replacement, the 'Section 45Z' Clean Fuel Production Credit. The report found that nearly 70% of the Biodiesel Tax Credit value flowed through the supply chain to blenders and consumers, ranking it among the most consumer-friendly biofuel policies.

Why it matters

The study highlights that the Biodiesel Tax Credit remains one of the most consumer-oriented tax policies, with the vast majority of its value lowering fuel prices at the pump. This reaffirms the industry's position that reinstating the Biodiesel Tax Credit is a common-sense solution for ensuring stable fuel supply options while also helping to lower fuel prices for American families and small businesses.

The details

The report, prepared by GlobalData, a leading energy research and analytics firm, found that when the Biodiesel Tax Credit was in place, between 50% and 70% of the credit value passed to blenders and consumers. By comparison, under the existing 'Section 45Z' Clean Fuel Production Tax Credit, just 20% to 40% of the credit value flows to blenders and consumers, with producers retaining up to 80% of the value.

  • The '40A' Biodiesel Blenders' Tax Credit expired at the end of 2024.
  • The 'Section 45Z' Clean Fuel Production Credit is the existing tax credit.

The players

NATSO

An organization representing America's travel centers and truck stops.

SIGMA: America's Leading Fuel Marketers

A national trade association representing fuel marketers and convenience stores.

National Association of Convenience Stores (NACS)

A national trade association representing the convenience and fuel retailing industry.

GlobalData

A leading energy research and analytics firm that prepared the report.

Max McBrayer

NATSO President and CEO.

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What they’re saying

“This study highlights that the Biodiesel Tax Credit remains one of the most consumer-oriented tax policies, with the vast majority of its value trickling down into lower prices at the pump.”

— Max McBrayer, NATSO President and CEO

“The study's findings confirm what fuel retailers see every day: reducing fuel costs at the point of blending means greater savings at the pump.”

— Matt Durand, Deputy General Counsel for NACS

What’s next

NATSO, SIGMA and NACS, which represent 90% of fuel sold at retail, are urging Congress to quickly reinstate the Biodiesel Tax Credit to help stabilize diesel prices and strengthen demand for renewable fuels.

The takeaway

This study highlights that the Biodiesel Tax Credit is a more consumer-friendly policy than the Clean Fuel Production Credit, as it delivers a significantly higher percentage of its value to blenders and consumers in the form of lower fuel prices. Reinstating the Biodiesel Tax Credit could provide much-needed relief for American families and small businesses struggling with high diesel costs.