BLOOMINGTON, Ill. — Biodiesel blend requirements in Illinois will increase to B19 and higher by next summer, potentially doubling the amount of biodiesel motorists would purchase. This is thanks to the Illinois General Assembly’s “11th-hour” reauthorization of the biodiesel B20 bill, passed in 2022, which increases the biofuel blend levels necessary to receive a sales tax exemption every year until the blend reaches B20. 

Under the law, on April 1, 2024 the required biodiesel blend level in order to receive tax credits increased from B11 to B14. On April 1, 2025, the level increased from B14 to B17, and on April 1, 2026, will increase from B17 to B20. In winter (Dec. 1 through March 31) the biodiesel blend required for the exemption will drop down to B10.

Facing budget constraints, the 104th Illinois General Assembly worked up until the May 31, 2025 midnight deadline to agree on a pared-down budget just before the end of the spring legislative session. In the end, the biodiesel B20 bill was spared the budget axe. 

“This was a really important credit that we were able to work hard to save at the 11th hour in Springfield, and we want to make sure we continue to have a unified front to protect this hugely important credit for Illinois agriculture,” Andrew Larson, director of government relations and strategy for the Illinois Soybean Association (ISA), told Farm World. Larson added that Illinois is fortunate to be one of just a few states that incentivize biodiesel production via tax credits. 

“We were able to successfully work with a number of legislators, particularly Senator (David) Koehler (D-Peoria), Senator (Patrick) Joyce (D-Kankakee) as well as Representative Eva-Dina Delgado (D-Chicago) for this very valuable credit that helps us use over over 100 million bushels of our soybeans in Illinois every year as biodiesel,” he said. “We think over 90 percent of the diesel fuel being sold in Illinois complies with that sales tax exemption, meaning that almost 90 percent of the gallons sold at the pump now is being sold at 17 percent or higher biodiesel, which is fourth in the country in gallons.”

ISA Chairman and Illinois soybean farmer Ron Kindred said he 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 Kindred, in an ISA news release. “Every step forward strengthens our energy security, drives demand for homegrown feedstocks and supports rural economies.” 

Steve Pitstick, ISA chairman, said in 2022 that the biodiesel B20 bill not only would significantly enhance the environmental benefits of biodiesel, but also lead to strengthened demand for Illinois-grown renewable fuel by up to 125 million gallons by 2026. Once the law is fully implemented it is expected to reduce greenhouse gas emissions by nearly 200,000 tons, according to Pitstick. 

The American Lung Association also praised the bill’s passage, stating “The shift to higher blends will lower tailpipe pollutants and drastically reduce carbon emissions across the transportation sector, leading to better air quality and a healthier environment for all Illinoisans.”

Several municipal transit fleets in Illinois have already adopted blends of 20 percent biodiesel, including the Chicago Park District, the Forest Preserve District of DuPage County, the Cook-Illinois Corp. and numerous municipality fleets in the Chicagoland area.

Illinois currently ranks fourth in biodiesel production and third in consumption, with an average annual consumption of 160 million gallons. More than half of U.S. biodiesel production capacity is located in the Midwest, primarily in Illinois, Iowa and Missouri, with the remainder mostly located on the Gulf and west coasts.