# U.S. biomass-based diesel tax credit renewed through 2022 in government spending bill - Mansfield Energy

> The $1.00 per gallon biodiesel mixture tax credit was reinstated in a December 2019 spending bill, applying to biodiesel and renewable diesel through 2022 and retroactively to 2018 and 2019. The credit offsets the higher cost of biomass-based diesel relative to petroleum diesel.

- Date: 2020-02-05 · published 2020-02-05T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/54471-u-s-biomass-based-diesel-tax-credit-renewed-through-2022-in-government-spending
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

The tax credit makes biodiesel and renewable diesel more competitive, supporting blending and soybean oil demand through 2022. This is a meaningful policy support for vegoil prices.

## Read by commodity

- SBO: bullish ▲
- DIESEL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2020-01-06 | [U.S. biomass-based diesel tax credit renewed through 2022 in government spending bill -
		U.S. Energy Information Administration (EIA)](https://feedsoft.ai/events/54949-u-s-biomass-based-diesel-tax-credit-renewed-through-2022-in-government-spending.md) | -2.1% | -13.0% |
| SBO | 2023-05-26 | [Governors Urge EPA to Increase Biomass-based Diesel RVOs - World-Energy](https://feedsoft.ai/events/15311-governors-urge-epa-to-increase-biomass-based-diesel-rvos-world-energy.md) | -0.4% | +17.1% |
| SBO | 2018-12-03 | [Increasing Biomass-Based Diesel Volumes included in US EPA’s 2020 renewable volume final rule](https://feedsoft.ai/events/61463-increasing-biomass-based-diesel-volumes-included-in-us-epa-s-2020-renewable.md) | +2.5% | +0.3% |
| SBO | 2025-07-28 | [Understanding the 45Z tax credit and RFS changes: US biomass-based diesel and SAF at a crossroads - Fastmarkets](https://feedsoft.ai/events/15106-understanding-the-45z-tax-credit-and-rfs-changes-us-biomass-based-diesel-and.md) | -1.3% | +0.4% |
| SBO | 2020-02-05 | [EPA Sets Final Rule for 2021 Biomass-Based Diesel Requirement - TT](https://feedsoft.ai/events/54465-epa-sets-final-rule-for-2021-biomass-based-diesel-requirement-tt.md) | -0.0% | -4.2% |
| DIESEL | 2024-12-30 | [COMMODITIES 2025: US biomass-based diesel market faces cost, regulatory challenges \| S&P Global](https://feedsoft.ai/events/15157-commodities-2025-us-biomass-based-diesel-market-faces-cost-regulatory.md) | +5.6% | +10.3% |
| DIESEL | 2026-05-04 | [Malaysia ramps up biodiesel use amid soaring energy bills - CNA](https://feedsoft.ai/events/15473-malaysia-ramps-up-biodiesel-use-amid-soaring-energy-bills-cna.md) | -1.7% | -8.4% |
| DIESEL | 2020-03-09 | [The Biodiesel Tax Credit: What Does the New Extension Mean? - OPIS, A Dow Jones Company](https://feedsoft.ai/events/54003-the-biodiesel-tax-credit-what-does-the-new-extension-mean-opis-a-dow-jones.md) | -17.1% | -21.9% |

## Sources

- mansfield.energy: https://mansfield.energy/2020/02/05/u-s-biomass-based-diesel-tax-credit-renewed-through-2022-in-government-spending-bill/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.