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

ALEXANDRIA, VA — 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.

Read the Coalition’s Letter to Senate Majority Leader Thune and Members of the Senate Finance Committee

Tiffany Wlazlowski Neuman

Wlazlowski Neuman leads NATSO and the NATSO Foundation’s public affairs initiatives and communications strategies to promote the truck stop and travel center industry to the public, opinion leaders, elected officials, and the media. Her outreach includes a spectrum of policy issues facing the industry, with a particular focus on transportation and fuel issues, truck parking, and human trafficking. She serves as NATSO’s representative on the U.S. Department of Transportation’s National Truck Parking Coalition, the Clean Freight Coalition, and various state truck parking technical advisory committees. She is the architect of the truck stop and travel center industry’s anti-human trafficking campaign and currently serves as a Committee member for the U.S. Department of Transportation’s Human Trafficking Advisory Council. Wlazlowski Neuman serves on the American Highway Users Policy and Government Affairs Committee.

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