Congress extends tax break for small biodiesel producers through 2029
S. 5583 — Small Agri-Biodiesel Producer Credit Extension Act · Filed by Chuck Grassley (R-IA) · 1 cosponsor · Introduced Sep 29, 2026 · Referred to committee
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What it does
This bill extends a federal tax credit for small biodiesel producers made from agricultural feedstocks by three years, from December 31, 2026 to December 31, 2029. Small agri-biodiesel producers will continue to receive the tax incentive beyond the current expiration date, lowering their tax liability and making biodiesel production more economically viable for small operations.
Why we flagged it
The bill's sole operative mechanism is extending an existing tax credit for a specific industry segment. It is a straightforward tax expenditure renewal with no broader policy reform or public-interest framing beyond the renewable-fuel context.
What the text implies
- Extension locks in foregone federal revenue for three additional years; the fiscal cost is not quantified in the bill text and depends on uptake by eligible producers.
- Biodiesel production incentives may indirectly affect agricultural commodity prices and land-use patterns, but the bill contains no environmental or climate-impact assessment.
- The credit's continued availability may influence small producers' capital investment and operational decisions, but the bill does not condition the credit on emissions reductions or sustainability standards.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Small agricultural biodiesel producers gain a direct financial benefit through continued tax credits, supporting rural economies and renewable energy production. However, the bill provides a narrow sectoral subsidy funded by foregone federal revenue, and the public benefit of biodiesel production (climate, energy independence) is uncertain and depends on implementation of broader energy policy.
Who stands to gain
- small agricultural biodiesel producers
- agricultural feedstock suppliers
Named in the bill
Internal Revenue Code of 1986, Section 40A(g), small agri-biodiesel producers, U.S. Department of Agriculture (implied regulatory context)
Where it stands
1 cosponsor: 1 Democrats.
- Sep 29, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Sep 29, 2026 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (273 characters) on Oct 9, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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