Missouri fueling stations could be missing out on thousands of dollars in savings if they aren’t taking advantage of the state’s biodiesel tax credit, warns the Biodiesel Coalition of Missouri (BCM).
“Depending on the blend, this credit can put real money back into business operations,” said Matt Amick, executive director of BCM. “This isn’t just about using biodiesel — it’s about improving profitability and supporting renewable energy in agriculture.”
The incentive allows retailers to claim a per-gallon credit on biodiesel blends sold. Given that the average Missouri fueling station pumps about 500,000 gallons of diesel annually, the financial impact can be substantial — particularly when blending with biodiesel. For blends B5-B10, the refundable tax credit is 2 cents/gallon. For blends B11 or higher, the refundable tax credit is 5 cents/gallon.
“A great benefit of the Missouri tax credit compared to other states is that the credit is available no matter the size of the fuel marketer,” said James Greer, Chairman of BCM. “The dollars available are prorated based on the gallons sold by marketer. This levels the playing field between small and large marketers.”
Established as a leading advocate for biodiesel in the state, BCM works to boost the availability of clean, renewable biodiesel through promotion, training and advocacy. Its priorities include expanding biodiesel consumption, educating stakeholders such as farmers and fuel marketers, providing policy guidance and supporting legislation that advances the biodiesel industry.
“Biodiesel isn’t just a cleaner fuel option,” added Amick. “It’s a Missouri-made solution that supports local farmers, strengthens the rural economy and improves energy resilience.”
Amick also encourages farmers and fleets who are using biodiesel blends to alert their fuel supplier of the tax credit. By taking the credit, the suppliers could offer lower fuel prices to biodiesel users.
That advocacy is paying off in tangible demand. In 2024, Missouri fueling stations using just modest biodiesel blends supported the use of approximately 50,000 bushels of soybean oil. Today, Missouri biodiesel plants have the capacity to utilize up to 1.8 billion pounds of soybean oil.
From a financial standpoint, tax credits significantly enhance margins.
“A great benefit of the Missouri tax credit compared to other states is that the credit is available no matter the size of the fuel marketer,” said Kim Hill, chief financial officer for Missouri Soybeans and a certified public accountant. “For small operators, these dollars can mean the difference between simply covering expenses and being able to reinvest in their business. It’s a straightforward way to strengthen the bottom line while supporting renewable energy.”
Biodiesel — typically made from soybean oil — offers environmental and engine performance advantages, including cleaner emissions and improved lubricity. The tax credit encourages wider adoption and amplifies market demand for soybean oil, directly benefiting Missouri farmers.
Information on the tax credit can be found at https://dor.mo.gov/forms/5879.pdf. BCM encourages fuel retailers and distributors to contact the Tax Credit Hunt Group at the Department of Revenue at 573-751-3220 or taxcredit@dor.mo.gov.
