H.R. 8497: Supporting Energy and Economic Development (SEED) Act

This legislation, known as the Supporting Energy and Economic Development (SEED) Act, aims to amend the Internal Revenue Code to extend certain tax incentives related to biodiesel and renewable diesel. Below are the key components of the bill:

Extension of Tax Incentives

The bill proposes to extend the duration of income tax credits and excise tax incentives for biodiesel and renewable diesel from 2024 to 2029. This means that companies producing these types of renewable fuel would continue to receive tax benefits for a longer period, encouraging the production and use of these fuels.

Income Tax Credit

• The bill changes the effective date of the income tax credit under Section 40A of the Internal Revenue Code, allowing the credit to be available until 2029.
• It introduces a provision to prevent a "double benefit," specifying that if a credit is claimed under another section for the same fuel, the amount determined for Section 40A will be zero.

Excise Tax Incentives

• Similar to the income tax credit, the excise tax incentives under Section 6426 are also extended to 2029. This includes credits for fuels used for taxable purposes.
• The bill includes a provision to deny a double benefit for fuels that receive a credit under another section, treating such claims similarly to the income tax credit.
• Additionally, the bill extends provisions related to payments for fuels not used for taxable purposes, also pushed back to 2029.

Effective Date

The changes suggested by the legislation would apply to fuel that is sold or used on or after the date the act is enacted.

Relevant Companies

• DAL - Delta Air Lines, Inc.: As a major airline, Delta may benefit from extended incentives for renewable fuels used in their operations.
• TSLA - Tesla, Inc.: Tesla’s development of renewable energy solutions may align with the incentives provided by the bill.
• ADM - Archer-Daniels-Midland Company: A key player in biofuels, ADM could see significant impacts from extended biodiesel incentives.
• CVE - Cenovus Energy Inc.: This company, with interests in renewable energy solutions, might benefit from the extended incentives as well.