NEW YORK (Reuters) -U.S. imports of biodiesel and renewable diesel slumped to a decade low in the first half of 2025 after a change in tax credits for the fuels went into effect, the U.S. Energy Information Administration said on Thursday.

The U.S. this year revamped the way it awards tax credits designed to incentivize biofuel production and consumption, with the changes effectively ending such incentives for imports of biodiesel and renewable diesel. Until last year, imports and local production earned the same $1 per gallon credit, but the new program applies to domestic production only.

“This tax credit change placed imports at a relative economic disadvantage,” the EIA said.

U.S. biodiesel imports averaged 2,000 barrels per day in the first half of this year, compared to 35,000 bpd

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