A bipartisan bill passed in 2022 to promote the use of higher biodiesel blends is making a significant impact once again in 2026. Effective today, April 1, biodiesel blend incentive requirements will increase from B17 to B20, marking the final step in the implementation of Illinois’ B20 incentive, simultaneously advancing the farm economy and clean air.
Illinois Soybean Association (ISA) Chairman and Illinois soybean farmer, Bryan Severs, is proud to see the continuation of efforts that support our state’s farmers. “Increasing biodiesel blend rates is a win for farmers, consumers, and the environment,” said Severs. “Every step forward strengthens our energy security, drives demand for homegrown feedstocks, and supports rural economies.”
The B20 bill raises the bar on biodiesel use by increasing the minimum biodiesel blend level eligible for tax exemption. Starting today, the eligible fuel mixture will jump from the current B17 to B20. This means every gallon of diesel that contains 20% biodiesel will be exempt from 6.25% sales taxes. There is an 11% percent blend rate during the winter months.
2025 was an extremely hard year for biodiesel use and production nationally. The industry saw a decrease in biodiesel use by 924 million gallons or 45% (according to U.S. Department of Energy data). However, in Illinois, we saw an increase of biodiesel use of 10 million gallons and 5%, due to the incentive (according to Illinois Department of Revenue data). This policy creates stable growth for the biodiesel industry in Illinois while there is extreme uncertainty nationally.
ISA extends its thanks to the key leaders behind the B20 Bill, including primary sponsors Rep. Eva Dina Delgado (D-Chicago), Sen. Patrick Joyce (D-Kankakee), and Rep. Charlie Meier (R-Okawville). Governor JB Pritzker and Director of Agriculture Jerry Costello were instrumental in protecting, advancing, and signing the legislation into law.
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