Supporting Energy and Economic Development (SEED) Act
- Bill Number
- S. 4408
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-28: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-05-13T15:51:57Z
AI-Generated Summary
Supporting Energy and Economic Development (SEED) Act (S. 4408)
Purpose
To extend tax incentives for biodiesel and renewable diesel fuels, encouraging their production and use to support energy security and economic growth.
Key Provisions
- Income tax credits (under Section 40A): Extends credits for biodiesel mixtures and pure biodiesel through December 31, 2029.
- Excise tax credits (under Sections 6426 and 6427): Extends credits for biodiesel mixtures used in taxable or nontaxable purposes through December 31, 2029.
- Anti-double benefit rules:
- Prevents claiming both the biodiesel credit and the clean fuel production credit (Section 45Z).
- Coordinates excise tax credits to avoid overlap with Section 45Z.
- Effective date: Applies to fuel sold or used on or after the date of enactment.
Significant Changes to Existing Law
- Previously, incentives expired after December 31, 2024; now extended to December 31, 2029 (with a temporary gap handled for periods after 2024 but before enactment).
- Adds new coordination rules to eliminate duplicate credits when interacting with the clean fuel production credit (Section 45Z).
Potential Impacts
- Government agencies: Increases tax expenditures (forgone revenue) for the IRS, potentially costing billions in extended credits.
- Citizens and businesses: Lowers costs for biodiesel producers, blenders, and users (e.g., farmers, fuel distributors, vehicle operators), promoting cheaper renewable fuel options.
- Energy sector: Boosts domestic biofuel production, reducing reliance on imported fossil fuels.
- No direct international relations impacts noted.
Main Stakeholders Affected
- Producers and blenders of biodiesel and renewable diesel (primary beneficiaries via extended credits).
- Farmers and feedstock suppliers (e.g., soybean or waste oil providers).
- Fuel consumers (e.g., truckers, off-road equipment users).
- Taxpayers (bear indirect costs through reduced government revenue).
- Clean fuel producers (affected by anti-double dipping rules).
Notable Legal, Constitutional, or Political Implications
- Legal: Modifies the Internal Revenue Code without altering core tax principles; ensures no double taxation benefits, maintaining fairness in tax incentives.
- Fiscal: Represents a targeted extension of expiring green energy subsidies, potentially influencing future budget debates on renewable vs. fossil fuel supports.
- Political: Supports bipartisan energy independence goals but may face scrutiny over federal spending on biofuels amid debates on climate policy effectiveness. No constitutional issues apparent.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-28: Read twice and referred to the Committee on Finance.
- 2026-04-28: Introduced in Senate
Bill Versions
- Supporting Energy and Economic Development (SEED) Act — issued 2026-04-28 — PDF (4 pages)