H.R. 3137 Strengthens America’s biofuels industry and protects Illinois soybean farmers
BLOOMINGTON, Ill. (June 6, 2025) – The Illinois Soybean Association (ISA) commends members of the Illinois congressional delegation for their steadfast bipartisan support of the 40A Blenders Credit, a critical measure that strengthens America’s biofuels fuel industry while supporting Illinois soybean farmers.
Reps. Mike Bost (R-IL-12), Nikki Budzinski (D-IL-13), Darin LaHood (R-IL-16), and Eric Sorensen (D-IL-17) have all signed onto H.R. 3137, which was introduced by Reps. Mike Carey (R-OH-15) and Mariannette Miller-Meeks (R-IA-1) on May 1.
The bipartisan legislation, which extends the biodiesel and renewable diesel blenders tax credit, represents a crucial investment in America’s energy independence and commitment to soybean farmers and rural communities across the Midwest. As the nation’s top soybean-producing state, Illinois stands to benefit significantly from this extension, which ensures the state’s biofuel refiners stay open, retain good paying jobs and continue to contribute to local and state economies.
“Southern Illinois farmers play a vital role in powering our nation forward – not just with food, but with fuel,” said Rep. Bost. “I’m proud to help lead the effort to extend the biodiesel and diesel blender tax credits, which supports good-paying jobs, strengthens energy independence, and protects the market for Illinois-grown soybeans. This bipartisan bill gives our biofuels producers the certainty they need to keep investing in rural communities and delivering American-made energy.”
“Soybeans are a cornerstone of Illinois’ economy, and few issues are more critical to our state than strengthening the biofuels industry and expanding market opportunities,” said Congresswoman Budzinski. “I am proud to support this legislation, which extends the federal tax credit for biodiesel producers and encourages continued investment in renewable fuels. We owe it to our farmers to help them stay competitive and provide certainty in these uncertain economic times.”
“Representing one of the largest corn and soybean producing districts in the nation, I know how critical biofuels are to the agriculture industry,” said Rep. LaHood. “The Biodiesel Tax Credit Extension Act will provide more certainty and opportunities for farmers, producers, and rural communities throughout the state. I am proud to join my colleagues in supporting this legislation to invest in the future of Illinois agriculture and American energy independence.”
“Illinois farmers work hard to feed and fuel our country, and they deserve a fair shot in the marketplace. This bill helps keep demand strong for biodiesel made from soybeans grown right here in Illinois and provides stable markets for farmers,” said Congressman Sorensen. “It’s a smart, bipartisan fix that supports good-paying jobs, strengthens our rural economy, and helps us keep moving toward cleaner energy.”
“We’re grateful to our representatives in Congress for recognizing the importance of this measure,” said ISA Chairman Ron Kindred. “Their strong bipartisan support demonstrates their commitment to Illinois farmers and economic stability for our rural communities.”
The 40A Blenders Credit supports biodiesel and renewable diesel production, which creates significant demand for soybean oil and provides stable markets for Illinois soybean farmers. This tax incentive helps level the playing field with petroleum-based fuels, making clean, renewable biodiesel more competitive in the marketplace.
Illinois produces more than 600 million bushels of soybeans annually, and Illinois’ biodiesel industry, which is the 4th largest in the nation with an annual production of approx. 192 million gallons a year, supports nearly 2,000 jobs in all sectors of the state’s economy. The extension of this tax credit will help provide certainty for both farmers and biodiesel producers, allowing for continued growth and investment in the sector.
The bill has earned support from the American Trucking Associations (ATA), Clean Freight Coalition, Energy Marketers of America (EMA), Illinois Soybean Association (ISA), National Association of Convenience Stores (NACS), National Energy & Fuels Institute (NEFI), NATSO, Representing America’s Travel Centers and Truck Stops, Renewable Fuels Association (RFA), Sustainable Advanced Biofuels Refiners (SABR), SIGMA: America’s Leading Fuel Marketers, National Tank Truck Carriers, and Truckload Carriers Association (TCA).
BACKGROUND ON 40A:
Biodiesel and renewable diesel are advanced biofuels that are generally produced from feedstocks such as soybean oil, recycled cooking oil, or other animal fats. The U.S. Environmental Protection Agency (EPA) defines the two fuels as renewable fuels that emit at least 50 percent less lifecycle greenhouse gas emissions than fossil fuel alternatives. In many cases, biodiesel and renewable diesel reduce emissions by more than 70 percent.
The biodiesel tax credit refers to a group of incentives included in Section 40A(g) of the Internal Revenue Code of 1986.
The Second-Generation Biofuel Producer Tax Credit provides a tax credit of up to $1.01 per gallon of qualifying advanced biofuels, such as cellulosic ethanol made from corn kernel fiber. This tax credit incentivizes investment in innovative fuel production technologies and has resulted in critical advancements in the production of domestically produced second generation biofuels.
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The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development, soybean production and government relations efforts, while the membership program and Illinois Soybean Growers (ISG) actively advocate for positive and impactful legislation for farmers at local, state, and national levels. ISA upholds the interests of Illinois soybean farmers through promotion, advocacy, research, and education with the vision of becoming a trusted partner of Illinois soybean farmers to ensure their profitability now and for future generations.
Media Contact:
Betsy Osman
Illinois Soybean Association
betsy.osman@ilsoy.org
