I 
115TH CONGRESS 
1ST SESSION H. R. 2383 
To amend the Internal Revenue Code of 1986 to reform and extend the 
incentives for biodiesel. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 4, 2017 
Mrs. NOEM (for herself, Mr. LOEBSACK, and Mr. PASCRELL) 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 reform 
and extend the incentives for biodiesel. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Renewable 
Fuel and Job Creation Act of 2017’’. 
SEC. 2. REFORM AND EXTENSION OF BIODIESEL TAX IN-
CENTIVES. 
(a) INCOME TAX CREDIT.— 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
(1) IN GENERAL.—So much of section 40A of 
the Internal Revenue Code as precedes subsection 
(c) is amended to read as follows: 
‘‘SEC. 40A. BIODIESEL FUELS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
biodiesel fuels credit determined under this section for the 
taxable year is $1.00 for each gallon of biodiesel produced 
by the taxpayer which during the taxable year— 
‘‘(1) is sold by the taxpayer to another per-
son— 
‘‘(A) for use by such other person’s trade 
or business as a fuel or in the production of a 
qualified biodiesel mixture (other than casual 
off-farm production), or 
‘‘(B) who sells such biodiesel at retail to 
another person and places such biodiesel in the 
fuel tank of such other person, or 
‘‘(2) is used by such taxpayer for any purpose 
described in paragraph (1). 
‘‘(b) INCREASED CREDIT FOR SMALL PRODUCERS.— 
‘‘(1) IN GENERAL.—In the case of any eligible 
small biodiesel producer, subsection (a) shall be ap-
plied by increasing the dollar amount contained 
therein by 10 cents. 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(2) LIMITATION.—Paragraph (1) shall only 
apply with respect to the first 15,000,000 gallons of 
biodiesel produced by any eligible small biodiesel 
producer during any taxable year.’’. 
(2) DEFINITIONS AND SPECIAL RULES.—Sec-
tion 40A(d) of such Code is amended by striking all 
that follows paragraph (1) and inserting the fol-
lowing: 
‘‘(2) QUALIFIED
BIODIESEL
MIXTURE; BIO-
DIESEL MIXTURE.— 
‘‘(A) QUALIFIED BIODIESEL MIXTURE.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied biodiesel mixture’ means a biodiesel 
mixture which is— 
‘‘(I) sold by the producer of such 
mixture to any person for use as a 
fuel, or 
‘‘(II) used by the producer of 
such mixture as a fuel. 
‘‘(ii) SALE
OR
USE
MUST
BE
IN 
TRADE
OR
BUSINESS, ETC.—A biodiesel 
mixture shall not be treated as a qualified 
biodiesel mixture unless the sale or use de-
scribed in clause (i) is in a trade or busi-
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
ness of the person producing the biodiesel 
mixture. 
‘‘(B) BIODIESEL
MIXTURE.—The term 
‘biodiesel mixture’ means a mixture which con-
sists of biodiesel and diesel fuel (as defined in 
section 4083(a)(3)), determined without regard 
to any use of kerosene. 
‘‘(3) BIODIESEL NOT USED FOR A QUALIFIED 
PURPOSE.—If— 
‘‘(A) any credit was determined with re-
spect to any biodiesel under this section, and 
‘‘(B) any person uses such biodiesel for a 
purpose not described in subsection (a), 
then there is hereby imposed on such person a tax 
equal to the product of the rate applicable under 
subsection (a) and the number of gallons of such 
biodiesel. 
‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of 
section 52 shall apply. 
‘‘(5) LIMITATION TO BIODIESEL WITH CONNEC-
TION TO THE UNITED STATES.— 
‘‘(A) IN GENERAL.—No credit shall be de-
termined under subsection (a) with respect to 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
biodiesel unless such biodiesel is produced in 
the United States from qualified feedstocks. 
For purposes of this paragraph, the term 
‘United States’ includes any possession of the 
United States. 
‘‘(B) QUALIFIED FEEDSTOCKS.—For pur-
poses of subparagraph (A), the term ‘qualified 
feedstock’ means any feedstock which is allow-
able for a fuel that is assigned a D code of 4 
under section 80.1426(f) of title 40, Code of 
Federal Regulations.’’. 
(3) RULES
FOR
SMALL
BIODIESEL
PRO-
DUCERS.— 
(A) IN GENERAL.—Section 40A(e) of such 
Code is amended— 
(i) by striking ‘‘agri-biodiesel’’ each 
place it appears in paragraphs (1) and 
(5)(A) and inserting ‘‘biodiesel’’, 
(ii) by striking ‘‘subsection (b)(4)(C)’’ 
each place it appears in paragraphs (2) 
and (3) and inserting ‘‘subsection (b)(2)’’, 
and 
(iii) by striking ‘‘subsection (a)(3)’’ 
each place it appears in paragraphs (5)(A), 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
(6)(A)(i), and (6)(B)(i) and inserting 
‘‘subsection (b)’’. 
(B) The heading for subsection (e) of sec-
tion 40A of such Code is amended by striking 
‘‘AGRI-BIODIESEL’’ and inserting ‘‘BIODIESEL’’. 
(C) The headings for paragraphs (1) and 
(6) of section 40A(e) of such Code are each 
amended by striking ‘‘AGRI-BIODIESEL’’ and in-
serting ‘‘BIODIESEL’’. 
(4) RENEWABLE DIESEL.— 
(A) IN GENERAL.—Paragraph (3) of sec-
tion 40A(f) of such Code is amended to read as 
follows: 
‘‘(3) RENEWABLE DIESEL DEFINED.— 
‘‘(A) IN GENERAL.—The term ‘renewable 
diesel’ means liquid fuel derived from biomass 
which— 
‘‘(i) is not a mono-alkyl ester, 
‘‘(ii) can be used in engines designed 
to operate on conventional diesel fuel, and 
‘‘(iii) meets the requirements for any 
Grade No. 1–D fuel or Grade No. 2–D fuel 
covered under the American Society for 
Testing and Materials specification D– 
975–13a. 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(B) EXCEPTIONS.—Such term shall not 
include— 
‘‘(i) any liquid with respect to which 
a credit may be determined under section 
40, 
‘‘(ii) any fuel derived from coproc-
essing biomass with a feedstock which is 
not biomass, or 
‘‘(iii) any fuel that is not chemically 
equivalent to petroleum diesel fuels that 
can meet fuel quality specifications appli-
cable to diesel fuel, gasoline, or aviation 
fuel. 
‘‘(C) BIOMASS.—For purposes of this 
paragraph, the term ‘biomass’ has the meaning 
given such term by section 45K(c)(3).’’. 
(B) CONFORMING AMENDMENTS.—Section 
40A(f) of such Code is amended— 
(i) by striking ‘‘Subsection (b)(4)’’ in 
paragraph (2) and inserting ‘‘Subsection 
(b)’’, and 
(ii) by striking paragraph (4) and in-
serting the following: 
‘‘(4) CERTAIN AVIATION FUEL.—Except as pro-
vided paragraph (3)(B), the term ‘renewable diesel’ 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
shall include fuel derived from biomass which meets 
the requirements of a Department of Defense speci-
fication for military jet fuel or an American Society 
for Testing and Materials specification for aviation 
turbine fuel.’’. 
(5) EXTENSION.—Subsection (g) of section 40A 
of such Code is amended by striking ‘‘December 31, 
2016’’ and inserting ‘‘December 31, 2020’’. 
(6) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 of such Code is amended by striking the 
item relating to section 40A and inserting the fol-
lowing new item: 
‘‘Sec. 40A. Biodiesel fuels credit.’’. 
(b) EXCISE TAX CREDIT.— 
(1) REFORM.—Subsection (c) of section 6426 
of the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘(c) BIODIESEL PRODUCTION CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the biodiesel production credit is $1.00 for each 
gallon of biodiesel produced by the taxpayer and 
which— 
‘‘(A) is sold by such taxpayer to another 
person— 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(i) for use by such other person’s 
trade or business as a fuel or in the pro-
duction of a qualified biodiesel mixture 
(other than casual off-farm production), or 
‘‘(ii) who sells such biodiesel at retail 
to another person and places such biodiesel 
in the fuel tank of such other person, or 
‘‘(B) is used by such taxpayer for any pur-
pose described in subparagraph (A). 
‘‘(2) DEFINITIONS.—Any term used in this sub-
section which is also used in section 40A shall have 
the meaning given such term by section 40A. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to any sale, use, or removal after December 
31, 2020.’’. 
(2) 
PRODUCER
REGISTRATION
REQUIRE-
MENT.—Subsection (a) of section 6426 of such Code 
is amended by striking ‘‘subsections (d) and (e)’’ in 
the flush sentence at the end and inserting ‘‘sub-
sections (c), (d), and (e)’’. 
(3) RECAPTURE.— 
(A) IN GENERAL.—Subsection (f) of sec-
tion 6426 of such Code is amended— 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
(i) by striking ‘‘or biodiesel’’ each 
place it appears in subparagraphs (A) and 
(B)(i) of paragraph (1), 
(ii) by striking ‘‘or biodiesel mixture’’ 
in paragraph (1)(A), and 
(iii) by redesignating paragraph (2) as 
paragraph (3) and by inserting after para-
graph (1) the following new paragraph: 
‘‘(2) BIODIESEL.—If any credit was determined 
under this section or paid pursuant to section 
6427(e) with respect to the production of any bio-
diesel and any person uses such biodiesel for a pur-
pose not described in subsection (c)(1), then there is 
hereby imposed on such person a tax equal to $1 for 
each gallon of such biodiesel.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Paragraph (3) of section 6426(f) 
of such Code, as redesignated by subpara-
graph (A)(iii), is amended by inserting ‘‘or 
(2)’’ after ‘‘paragraph (1)’’. 
(ii) The heading for paragraph (1) of 
section 6426(f) of such Code is amended 
by striking ‘‘IMPOSITION OF TAX’’ and in-
serting ‘‘IN GENERAL’’. 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
(4) LIMITATION.—Section 6426(i) of such Code 
is amended— 
(A) in paragraph (2)— 
(i) by striking ‘‘biodiesel or’’, and 
(ii) by striking ‘‘BIODIESEL AND’’ in 
the heading, and 
(B) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) BIODIESEL.—No credit shall be deter-
mined under subsection (a) with respect to biodiesel 
unless such biodiesel is produced in the United 
States from qualified feedstocks (as defined in sec-
tion 40A(d)(5)(B)).’’. 
(5) CLERICAL AMENDMENTS.— 
(A) The heading of section 6426 of such 
Code is amended by striking ‘‘ALCOHOL 
FUEL, 
BIODIESEL, 
AND
ALTERNATIVE 
FUEL MIXTURES’’ and inserting ‘‘ALCOHOL 
FUEL MIXTURES, BIODIESEL PRODUCTION, 
AND ALTERNATIVE FUEL MIXTURES’’. 
(B) The item relating to section 6426 in 
the table of sections for subchapter B of chap-
ter 65 of such Code is amended by striking ‘‘al-
cohol fuel, biodiesel, and alternative fuel mix-
tures’’ and inserting ‘‘alcohol fuel mixtures, bio-
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
diesel production, and alternative fuel mix-
tures’’. 
(c) EXCISE PAYMENTS.—Subsection (e) of section 
6427 of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘or the biodiesel mixture credit’’ 
in paragraph (1), 
(2) by redesignating paragraphs (3) through 
(6) as paragraphs (4) through (7), respectively, and 
by inserting after paragraph (2) the following new 
paragraph: 
‘‘(3) BIODIESEL PRODUCTION CREDIT.—If any 
person produces biodiesel and sells or uses such bio-
diesel as provided in section 6426(c)(1), the Sec-
retary shall pay (without interest) to such person an 
amount equal to the biodiesel production credit with 
respect to such biodiesel.’’, 
(3) by striking ‘‘paragraph (1) or (2)’’ each 
place it appears in paragraphs (4) and (6), as redes-
ignated by paragraph (2), and inserting ‘‘paragraph 
(1), (2), or (3)’’, 
(4) by striking ‘‘alternative fuel’’ each place it 
appears in paragraphs (4) and (6), as redesignated 
by paragraph (2), and inserting ‘‘fuel’’, and 
(5) in paragraph (7)(B), as redesignated by 
paragraph (2)— 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
(A) by striking ‘‘biodiesel mixture (as de-
fined in section 6426(c)(3))’’ and inserting 
‘‘biodiesel (within the meaning of section 
40A)’’, and 
(B) by striking ‘‘December 31, 2016’’ and 
inserting ‘‘December 31, 2020’’. 
(d) GUIDANCE.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of the 
Treasury, or the Secretary’s delegate, shall issue prelimi-
nary guidance with respect to the amendments made by 
this section. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2016. 
(f) SPECIAL RULE FOR 2017.—Notwithstanding any 
other provision of law, in the case of any biodiesel mixture 
credit properly determined under section 6426(c) of the 
Internal Revenue Code of 1986 for period beginning after 
December 31, 2016, and ending before the date of the en-
actment of this Act, such credit shall be allowed, and any 
refund or payment attributable to such credit (including 
any payment under section 6427(e) of such Code) shall 
be made, only in such manner as the Secretary of the 
Treasury (or the Secretary’s delegate) shall provide. Such 
Secretary shall issue guidance within 30 days after the 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS
date of the enactment of this Act providing for a one-time 
submission of claims covering periods described in the pre-
ceding sentence. Such guidance shall provide for a 180- 
day period for the submission of such claims (in such man-
ner as prescribed by such Secretary) to begin not later 
than 30 days after such guidance is issued. Such claims 
shall be paid by such Secretary not later than 60 days 
after receipt. If such Secretary has not paid pursuant to 
a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid 
with interest from such date determined by using the over-
payment rate and method under section 6621 of such 
Code. 
Æ 
VerDate Sep 11 2014 
04:57 May 11, 2017
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\BILLS\H2383.IH
H2383
SSpencer on DSK4SPTVN1PROD with BILLS