Overview
Title
To amend the Internal Revenue Code of 1986 to extend the biodiesel fuels credit and the biodiesel mixture credit.
ELI5 AI
H.R. 9060 is a rule that wants to keep giving special money-back offers (like a coupon) to people who use a type of eco-friendly fuel called biodiesel. It wants to continue these offers for one more year until the end of 2025, but you can’t use the same “coupon” twice for the same fuel.
Summary AI
H.R. 9060, also known as the “Biodiesel Tax Credit Extension Act of 2024,” aims to amend the Internal Revenue Code of 1986 to extend tax credits for both biodiesel fuels and biodiesel mixtures used as renewable diesel. Specifically, the bill proposes extending these credits from the end of 2024 to the end of 2025. Additionally, the bill addresses the issue of double benefits by stating that if a fuel receives a credit under another section of the tax code, the biodiesel credit amount would be set to zero for that fuel. The changes outlined in the bill would be effective for fuel sold or used after December 31, 2024.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the "Biodiesel Tax Credit Extension Act of 2024," aims to amend the Internal Revenue Code of 1986 to extend certain tax credits associated with the use of biodiesel and renewable diesel. Specifically, it seeks to extend the biodiesel fuels credit and the biodiesel mixture credit by one year, moving the expiration date from 2024 to 2025. Furthermore, the bill provides provisions to prevent double benefit claims under certain conditions, namely alongside credits allowed under section 45Z(a). This extension applies to the fuel sold or used after December 31, 2024.
Summary of Significant Issues
One of the primary concerns identified in the bill is the one-year extension period for the tax credits. Such a short extension may necessitate frequent legislative updates, creating ongoing administrative burdens for both businesses involved in the biodiesel sector and governmental agencies responsible for regulation and compliance.
Additionally, the bill includes language aimed at denying double benefits for certain tax credits. However, the repetition of this language in different contexts could create confusion if it’s not clearly differentiated or adequately cross-referenced with existing regulations, potentially leading to compliance issues for businesses.
The exclusive focus on the biodiesel and renewable diesel sector raises further concerns about whether the legislation provides unfair advantages to certain renewable energy sources at the expense of others.
Lastly, the effective date of the amendments, which is set to be after December 31, 2024, could pressure businesses with a narrow window to adapt their compliance and operational processes according to the new rules.
Impact on the Public
For the general public, the extension of these credits is a positive signal towards encouraging the production and use of biodiesel as a step towards greener fuel alternatives. The use of biodiesel could contribute to reduced emissions and a smaller environmental footprint, which benefits society by promoting sustainable energy solutions.
However, the short duration of the credit extension might lead to instability within the market. Businesses might be hesitant to make long-term investments in the biodiesel sector if future extensions remain uncertain, potentially hindering market growth and innovation.
Impact on Specific Stakeholders
For businesses involved in the production and distribution of biodiesel, the extension of tax credits should provide immediate financial relief and enhance the sector's economic viability in the short term. These stakeholders would benefit from increased competitiveness and market presence. However, the uncertainty surrounding future extensions could deter long-term strategic planning and investment.
Policy makers and regulatory agencies may face increased demands associated with frequent legislative updates and revisions. This could strain resources and divert attention from other pressing legislative agendas.
Lastly, competitors from other renewable energy sectors might view this legislation as disproportionately favoring biodiesel. They could argue that broader support is necessary to foster an all-encompassing transition towards renewable energy, potentially lobbying for similar support and incentives in future legislative proposals.
Issues
The amendment in Section 2 extends the biodiesel and renewable diesel credit and the biodiesel mixture credit for only one year, from 2024 to 2025. This short extension period may necessitate frequent legislative updates, causing administrative overhead for businesses and the government alike.
The repeated use of the language "Denial of Double Benefit" in two separate amendments in Section 2 (subsections 40A and 6426(c)) could lead to confusion. Both refer to credits under section 45Z(a), but without clear differentiation, it might be unclear how these amendments intricately interact with existing regulations.
Concerns may arise regarding whether the bill unduly favors the biodiesel industry over other renewable energy sources, as the provisions in Section 2 focus solely on extending incentives for biodiesel and renewable diesel usage.
The amendments are set to take effect for fuel sold or used after December 31, 2024, per Section 2(c). This could create a last-minute rush or arbitrary deadline for businesses to adjust their compliance processes, depending on the legislative timelines.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this document gives the short title for the act. It states that the act is called the "Biodiesel Tax Credit Extension Act of 2024".
2. Extension of biodiesel and renewable diesel credit and biodiesel mixture credit Read Opens in new tab
Summary AI
The section extends tax credits for biodiesel and renewable diesel by one year, from 2024 to 2025, and specifies that no double benefits can be claimed for fuel under the credits outlined in this code section and section 45Z(a). These changes will apply to fuel sold or used after December 31, 2024.