Al Warren Oil is excited to share important updates regarding the Illinois biodiesel space with our esteemed customers and potential new clients. Given the recent adjustments to the Illinois Biodiesel Law, it’s crucial for everyone to understand how these changes might affect your fuel choices, especially with the growing importance of biodiesel for both environmental sustainability and economic benefits.
The State of Illinois has recently updated its biodiesel incentives, specifically the tax exemption program for biodiesel blends. These legislative changes are pivotal for both businesses and consumers interested in leveraging biodiesel. Commencing April 1, 2024, the biodiesel blend that qualifies for the state’s 6.25% excise tax exemption will transition from B11 (blends containing more than 10% but no more than 99% biodiesel) to B14.
This marks a significant move towards encouraging higher biodiesel blend usage. Further adjustments will see the requirement shift to B17 in 2025 and eventually B20 by 2026. Interestingly, during the winter months of each year throughout this period, the blend requirement will revert to B11 to maintain eligibility for the tax exemption.
These changes underscore a push towards greater use of biodiesel, offering a renewable and cleaner alternative to traditional diesel. This helps reduce greenhouse gas emissions and decreases reliance on fossil fuel sources.
With the tax exemptions applied to higher biodiesel blends, our customers stand to benefit from considerable savings, making biodiesel an economically appealing choice.
Opting for higher biodiesel blends directly contributes to reducing environmental pollution. This effort aligns with broader sustainability goals and supports Illinois’ leadership role in the biodiesel industry.
