Small Agri-Biodiesel Producer Credit

Illinois — state program$.10 per gallon (Jan. 1–June 30, 2025); $.20 per gallon (after June 30, 2025 through Dec. 31, 2026)

A credit for small agri-biodiesel producers on qualifying fuel sold or used. For fuel sold or used Jan. 1–June 30, 2025, the rate is $0.10/gallon; for fuel sold or used after June 30, 2025 but before Jan. 1, 2027, the rate increases to $0.20/gallon. Producers may elect to transfer all or a portion of the credit to an unrelated third-party buyer under IRC 6418 for fuel sold or used after June 30, 2025.

Program details

Type: tax-credit
Amount: $.10 per gallon (Jan. 1–June 30, 2025); $.20 per gallon (after June 30, 2025 through Dec. 31, 2026)
Eligibility: Small agri-biodiesel producers; qualified agri-biodiesel fuel must be exclusively derived from feedstock produced or grown in the United States, Canada, or Mexico (for fuel sold or used after June 30, 2025). Producers wishing to transfer credits must complete mandatory pre-filing registration.
Status: open
Administrator: IRS
More Info: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

Source: Illinois — state program. Confirm current terms with the administering agency before applying.

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