The SEED Act extends biodiesel and renewable diesel tax credits through 2029, retroactively reinstating them for the gap period since January 2025. This directly improves margins for producers like Darling Ingredients (DGD joint venture) and REX American Resources, and supports continued investment in production capacity. The bill is in early legislative stages but has bipartisan appeal as a clean energy tax extension.
→ The credit extension directly improves REX's per-gallon margin by ~$1.00, as REX produces biodiesel that qualifies for the blender's tax credit. The retroactive reinstatement also provides a lump-sum benefit for production during the gap period.
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