Supporting Energy and Economic Development (SEED) Act

Summary of H.R. 8497 (119th Congress) – Supporting Energy and Economic Development (SEED) Act

Purpose

The SEED Act aims to extend biodiesel and renewable diesel tax incentives through 2029 and to clarify rules that prevent taxpayers from receiving multiple benefits for the same fuel. The bill modifies existing Internal Revenue Code provisions related to income tax credits, excise tax incentives, and related subsidy payments to ensure continuity of incentives while preventing double-benefit scenarios.

Key Provisions

1) Extension of Biodiesel and Renewable Diesel Incentives

• Extends the current biodiesel and renewable diesel incentives through 2029.
  • Income tax credit (Section 40A(g) of the Internal Revenue Code): The reference year for the credit extension is changed from 2024 to 2029.
  • Excise tax incentives (Section 6426(c)(6)): The reference year for credits against excise taxes is changed from 2024 to 2029.
  • Payments for fuels not used for taxable purposes (Section 6427(e)(6)(B)): The reference year for eligible payments is changed from 2024 to 2029.

2) Denial of Double Benefit

• Adds explicit provisions to prevent “double benefits” when biodiesel/renewable diesel fuels generate multiple qualifying incentives.
  • Income tax side: Introduces new subsections to ensure that if a fuel has a credit under Section 45Z(a) for any taxable year, the amount determined under Section 40A for that fuel is zero.
  • Excise tax side: Similar denial of double benefits is added for fuels with a credit under Section 45Z(a) to ensure the excise tax credit cannot be claimed in addition to the federal credit for the same fuel.
  • Payments side: Parallel rule to deny double benefits for fuels with a Section 45Z(a) credit when calculating eligible payments under Section 6427(e)(6)(B).

3) Effective Date

• The amendments apply to fuels sold or used on or after the date of enactment of the Act.

Who/What Is Impacted

• Biodiesel and renewable diesel producers and blenders that rely on federal tax credits under:
  • Section 40A (income tax credits)
  • Section 6426 (excise tax credits)
  • Section 6427 (payments for non-taxable purposes)
• Businesses and individuals involved in the sale, use, or blending of biodiesel and renewable diesel who would otherwise rely on these incentives.
• Taxpayers subject to the 45Z credit (the specific credit referenced for double-benefit denials), ensuring coordination between multiple fuel incentive programs.

Procedural and Timeline Aspects

• Introduction Date: April 27, 2026
• Chamber: U.S. House of Representatives; referred to the Committee on Ways and Means
• Next steps would involve committee consideration, potential amendments, and floor action in the House, followed by potential Senate consideration and conference, if enacted.

Notes

• The bill is framed as an extension and coordination measure, focusing on preserving incentives for biodiesel and renewable diesel while tightening rules to avoid stacking benefits from multiple programs for the same fuel.
• Specific dollar amounts are not altered in the text; the primary changes are the extension to 2029 and the formalized double-benefit prohibitions.