Supporting Energy and Economic Development (SEED) Act

Bill Number

H.R. 8497

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-04-27: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-04T08:08:53Z

AI-Generated Summary

Purpose

The Supporting Energy and Economic Development (SEED) Act (H.R. 8497) aims to extend tax incentives for biodiesel and renewable diesel fuels through amendments to the Internal Revenue Code of 1986, promoting their production and use to support energy security and economic growth.

Key Provisions

• Income Tax Credit Extension: Extends the biodiesel and renewable diesel mixture credit under Section 40A(g) from 2024 to 2029.
• Excise Tax Credit Extension:
• Extends the credit for biodiesel/renewable diesel used as fuel under Section 6426(c)(6) to 2029.
• Extends payments for fuels not used for taxable purposes under Section 6427(e)(6)(B) to 2029.
• Denial of Double Benefit:
• Prevents taxpayers from claiming both the credits under Sections 40A or 6426(c) and the clean fuel production credit under Section 45Z (a new credit for low-emission fuels) for the same fuel.
• Effective Date: Applies to fuel sold or used on or after the date of enactment.

Significant Changes to Existing Law

• Expiration Date Extension: Pushes the end date for biodiesel/renewable diesel tax credits and payments from December 31, 2024, to December 31, 2029, providing five additional years of incentives.
• New Anti-Double-Dipping Rule: Introduces provisions to eliminate overlapping benefits with the Section 45Z clean fuel production credit, redesignating subsections to accommodate this (e.g., 40A(g) becomes 40A(h)).

Potential Impacts

• Government Agencies: The U.S. Treasury and IRS will process extended credits, potentially reducing federal tax revenue by subsidizing biofuel production (exact cost depends on fuel volumes).
• Citizens and Businesses: Lowers costs for biofuel producers and users (e.g., farmers, trucking companies), encouraging a shift from fossil diesel and supporting rural economies.
• Energy Sector: Boosts domestic biofuel supply, reducing reliance on imported oil, with minimal direct impact on international relations.
• Environment: Indirectly promotes lower-carbon fuels, though not as aggressively as the newer Section 45Z credit.

Main Stakeholders Affected

• Biofuel Producers: Primary beneficiaries through extended tax credits.
• Agriculture Sector: Farmers supplying feedstocks (e.g., soybeans, animal fats) gain from increased demand.
• Fuel Consumers: Businesses and individuals using diesel benefit from potentially cheaper renewable alternatives.
• Taxpayers: Bear indirect costs via reduced government revenue.
• Bipartisan Sponsors: Representatives from agricultural states (e.g., Iowa, South Dakota, Pennsylvania), indicating support from both parties.

Notable Legal, Constitutional, or Political Implications

• Legal: Standard tax code amendment; ensures no double taxation benefits, aligning incentives with emerging clean energy policies like Section 45Z.
• Constitutional: No apparent issues; Congress has broad authority over tax incentives under Article I.
• Political: Bipartisan backing suggests broad appeal for energy independence and rural economic support; extends expiring provisions amid debates on green energy transitions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Carey, Mike [R-OH-15]

Cosponsors (15)

Rep. Correa, J. Luis [D-CA-46], Rep. Kelly, Mike [R-PA-16], Rep. Carbajal, Salud O. [D-CA-24], Rep. LaHood, Darin [R-IL-16], Rep. Costa, Jim [D-CA-21], Rep. Tenney, Claudia [R-NY-24], Rep. Miller-Meeks, Mariannette [R-IA-1], Rep. Johnson, Dusty [R-SD-At Large], Rep. Hinson, Ashley [R-IA-2], Rep. Mann, Tracey [R-KS-1], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Bost, Mike [R-IL-12], Rep. Finstad, Brad [R-MN-1], Rep. Feenstra, Randy [R-IA-4], Rep. Moore, Blake D. [R-UT-1]

Recent Actions

• 2026-04-27: Referred to the House Committee on Ways and Means.
• 2026-04-27: Introduced in House
• 2026-04-27: Introduced in House

Bill Versions

• Supporting Energy and Economic Development (SEED) Act — issued 2026-04-27 — PDF (3 pages)