Excise fuel incentive credits for businesses

Expired Credits

The following fuel incentive credits expired for sales or uses after December 31, 2024:

• alternative fuel credit,
• alternative fuel mixture credit (note: the Internal Revenue Code section 6427(e) payment expired for sales or uses after December 31, 2011),
• biodiesel and renewable diesel credit (see exception below for small agri-biodiesel producer credit),
• biodiesel and renewable diesel mixture credit,
• sustainable aviation fuel credit (see exception below), and
• second generation biofuel producer credit.

Sustainable Aviation Fuel

Internal Revenue Code sections 40B and 6427(e) credits for sustainable aviation fuel expired for sales or uses after December 31, 2024. However, the section 6426(k) credit for sustainable aviation fuel mixtures expired for sales or uses after September 30, 2025.

Small Agri-Biodiesel Producer Credit

The small agri-biodiesel producer credit under Internal Revenue Code section 40A(b)(4) has been extended for sales or uses through December 31, 2026. For sales or uses from January 1, 2025 through June 30, 2025, the credit is $0.10 per gallon. For sales or uses from July 1, 2025 through December 31, 2026, the credit is $0.20 per gallon, and the fuel must be exclusively derived from a feedstock produced or grown in the United States, Mexico, or Canada.