I 

117TH CONGRESS 

1ST SESSION H. R. 3272 

To amend the Internal Revenue Code of 1986 to extend biodiesel and 

renewable diesel incentives, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 17, 2021 

Mr. COSTA (for himself and Mr. VALADAO) introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

biodiesel and renewable diesel incentives, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biodiesel, Renewable 

5 Diesel, and Alternative Fuels Extension Act of 2021’’. 

6 SEC. 2. EXTENSION OF BIODIESEL AND RENEWABLE DIE7 SEL INCENTIVES. 

8 (a) INCOME TAX CREDIT.— 

9 (1) EXTENSION.—Subsection (g) of section 40A 

10 of the Internal Revenue Code of 1986 is amended by 


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1 striking ‘‘December 31, 2022’’ and inserting ‘‘De2 cember 31, 2025’’. 

3 (2) PHASEDOWN.—Subsection (b) of section 

4 40A of such Code is amended by adding at the end 

5 the following: 

6 ‘‘(5) PHASEDOWN.—In the case of taxable 

7 years beginning after 2022, paragraphs (1)(A) and 

8 (2)(A) shall each be applied by substituting for 

9 ‘$1.00’ the following: 

10 ‘‘(A) ‘$0.75’ for taxable years beginning in 

11 2023, and 

12 ‘‘(B) ‘$0.50’ for taxable years beginning 

13 after 2023.’’. 

14 (b) EXCISE TAX INCENTIVES.— 

15 (1) CREDIT.—Paragraph (6) of section 6426(c) 

16 of such Code is amended by striking ‘‘December 31, 

17 2022’’ and inserting ‘‘December 31, 2025’’. 

18 (2) PAYMENTS.—Subparagraph (B) of section 

19 6427(e)(6) of such Code is amended by striking 

20 ‘‘December 31, 2022’’ and inserting ‘‘December 31, 

21 2025’’. 

22 (3) PHASEDOWN.—Paragraph (2) of section 

23 6426(c) of such Code is amended by inserting before 

24 the period at the end the following: ‘‘($0.75 for fuel 


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1 sold or used in 2023 and $0.50 for fuel sold or used 

2 after 2023)’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to fuel sold or used after December 

5 31, 2021. 

6 SEC. 3. EXTENSION OF EXCISE TAX CREDITS RELATING TO 

7 ALTERNATIVE FUELS. 

8 (a) EXTENSION OF ALTERNATIVE FUELS EXCISE

9 TAX CREDITS.— 

10 (1) IN GENERAL.—Paragraph (5) of section 

11 6426(d) and paragraph (3) of section 6426(e) of the 

12 Internal Revenue Code of 1986 are each amended by 

13 striking ‘‘December 31, 2021’’ and inserting ‘‘De14 cember 31, 2025’’. 

15 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

16 FUELS.—Subparagraph (C) of section 6427(e)(6) of 

17 such Code is amended by striking ‘‘December 31, 

18 2021’’ and inserting ‘‘December 31, 2025’’. 

19 (3) PHASEDOWN.— 

20 (A) ALTERNATIVE FUEL CREDIT.—Para21 graph (1) of section 6426(d) of such Code is 

22 amended by inserting ‘‘(37.5 cents for fuel sold 

23 or used in 2023 and 25 cents for fuel sold or 

24 used after 2023)’’ after ‘‘50 cents’’. 


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1 (B) ALTERNATIVE FUEL MIXTURE CRED2 IT.—Paragraph (1) of section 6426(e) of such 

3 Code is amended by inserting ‘‘(37.5 cents for 

4 fuel sold or used in 2023 and 25 cents for fuel 

5 sold or used after 2023)’’ after ‘‘50 cents’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to fuel sold or used after December 

8 31, 2021. 

Æ 


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