Provides a tax credit for farmers who use qualified biodiesel fuel for the sole operation of their farm equipment

This bill provides a tax credit to eligible farmers who use qualified biodiesel fuel exclusively in their farm equipment. The credit equals $0.01 per percent of biodiesel per gallon (capped at $0.20 per gallon) for qualified biodiesel fuel purchased during the tax year. It applies to farmers primarily engaged in farming (Section 1) or those with at least two-thirds of federal gross income from farming (Section 2), with definitions specifying biodiesel must meet ASTM D 6751 standards. The credit can be refunded if it exceeds tax liability, but no interest is paid on refunds. The provision takes effect for taxable years beginning January 1, 2026.