Fuels and Freight Groups Praise Senate for Equalizing Tax Treatment of Biofuels

ALEXANDRIA, Va., June 27, 2025 /PRNewswire/ -- NATSO, representing truck stops and travel centers, American Trucking Associations (ATA), Association of American Railroads (AAR), National Association of Convenience Stores (NACS), National Energy & Fuels Institute, Sustainable Advanced Biofuel Refiners (SABR), and SIGMA: America's Leading Fuel Marketers, commended the Senate Finance Committee for its tax reform package that would establish equal tax treatment for all advanced biofuels.

The Senate's proposed tax and budget reconciliation legislation would modify the '45Z' Clean Fuel Production Tax Credit to restore tax parity between sustainable aviation fuel (SAF) and other advanced biofuels like biodiesel and renewable diesel effective Oct. 1, 2025. Modifying '45Z' to be technology-neutral marks a critical step in revitalizing U.S. biofuel production, which has dropped sharply since the credit took effect in January. 

"We give the Senate a lot of credit for reconfiguring '45Z' to be truly technology neutral. SAF should be incentivized at the same rate as all other biofuels. An equal incentive – 'parity' – will result in more gallons of biofuel being produced and consumed, all at a lower cost for taxpayers," said David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA. "Importantly, this provision reduces the overall cost of the '45Z' tax credit while also incentivizing more over the road fuel production – helping to lower prices for consumers. A win for everyone."

"A level playing field for sustainable aviation fuels versus over-the-road biofuels is critical to restoring the biodiesel market," said Matt Durand, NACS Deputy General Counsel. "Today, the biodiesel market is failing due to tax policy. Unless we act to ensure biodiesel is no longer disadvantaged, the market may never recover. NACS strongly supports the Section '45Z' parity proposal and urges the Senate to retain it."

The Democrats' Inflation Reduction Act of 2022 provided a higher tax credit of up to $1.75 for Sustainable Aviation Fuel production. The higher aviation fuel tax credit signed into law by President Biden, coupled with the expiration of the Biodiesel Blenders' Tax Credit at the end of 2024, has decimated America's advanced biofuel supply chains. 

Equal tax treatment between alternative biofuels represents a significant step toward the much-needed certainty that will encourage biofuel production and consumption. SAF is more costly than biodiesel and renewable diesel and results in the production of less gallons of overall fuel. Under the Senate legislation, SAF would have access to the same credit as all other fuels and producers will be able to gravitate toward the most efficient fuels in the market.

NATSO is the trade association representing America's travel plaza and truck stop industry. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truck stop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. Contact: Tiffany Wlazlowski Neuman, Vice President, Public Affairs. 202-365-9459

SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States and Canada. Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. Representing a diverse membership of approximately 250 independent chain retailers and marketers of motor fuel, the association serves to further the interests of both the branded and unbranded segments of the industry while providing information and services to members. For more information visit SIGMA.org.

NACS For more than 60 years, NACS has been recognized as the premiere association for convenience and fuel retailers. NACS has more than 1,000 retail member companies that cumulatively represent more than 200,000 stores in 50-plus countries, including 90,000 stores in the United States alone. The U.S. convenience store industry, with more than 152,000 stores nationwide selling fuel, food and merchandise, conducts 160 million transactions daily and had sales of $837 billion in 2024. For more information, visit convenience.org. Follow NACS on LinkedIn, Twitter, Facebook and Instagram.

ATA is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation's freight.

AAR Since 1934, AAR has been the leading voice for the U.S. freight rail industry, driving policy, research, and technology to enhance safety and efficiency. Freight rail is a cornerstone of the U.S. economy, powering industries, facilitating trade, and supporting some of America's safest and highest paid jobs—all while operating on a privately funded infrastructure that eases congestion on taxpayer-funded roads. From bulk commodities to intermodal freight, rail ensures the seamless movement of goods nationwide, serving as a vital link in global supply chains.

NEFI Since 1942, NEFI has been a leading voice for wholesale and retail liquid heating fuel distributors. Members are small, family-owned and -operated businesses that deliver warmth and comfort to millions of American homes. These businesses distribute vital home heating fuels and related products and services to residential and commercial customers. They often develop close relationships with their local communities and are recognized leaders in energy efficiency, conservation, and safety.

SABR Sustainable Advanced Biofuel Refiners (SABR) is a coalition of stakeholders that have invested in building out America's first advanced biofuel — biodiesel. Biodiesel is the most cost-effective means to reduce greenhouse gas (GHG) emissions from medium- and heavy-duty vehicles, providing numerous economic, environmental, and energy security benefits. SABR includes stakeholders from every link in the value chain from feedstock growers to biodiesel producers, distributors, retailers, and consumers, as well as infrastructure and products and services suppliers.

Contact:
Tiffany Wlazlowski
[email protected]  

SOURCE NATSO, Inc.