Winter-Ready: Illinois Rolls Back Biodiesel Exemption to B11
As December 2024 rolls in, businesses in Illinois are now navigating the winter adjustments to biodiesel tax exemptions. If you’re managing fuel purchases or relying on biodiesel blends, these updates are important for maintaining smooth operations and cost savings during the colder months.
Winter-Specific Tax Exemption: December to March
During the winter season, from December to March, Illinois has temporarily returned the sales tax exemption threshold to biodiesel B11. This adjustment applies every year from 2024 to 2026 and reflects the challenges of using higher biodiesel blends in colder temperatures. You can read the full bill here.
B11 blends offer better reliability in winter conditions, reducing the risk of fuel gelling or performance issues that can occur with higher biodiesel concentrations in the fuel blend. This seasonal rollback allows businesses to:
- Qualify for the 6.25% sales tax exemption with a B11 blend.
- Avoid disruptions caused by cold-weather fuel performance.
- Continue benefiting from cost savings without immediate changes to operations.
This flexibility is essential for businesses running fleets or equipment during harsh winter months, ensuring fuel performance while maintaining tax advantages. The winter exemption adjustment highlights Illinois’ practical approach to supporting biodiesel adoption while addressing operational challenges in colder climates.
Planning for April 2025 and Beyond
While the B11 threshold is in place for winter, businesses must prepare for the return to higher requirements in spring:
- April 2025 – The tax exemption threshold will increase to B17.
- April 2026 – It will rise further to B20.
With these higher blend requirements on the horizon, winter becomes an important time to evaluate fuel suppliers and ensure readiness for compliance in the months ahead. You can contact your fuel supplier in case you need to adjust your current biodiesel blend.
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This article is part of Biofuels
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