Instructions For Form 6478 - Biofuel Producer Credit

The fuel has an acid number greater than 25.

Schedule K-1 (Form 1041), Beneficiary's Share of

Income, Deductions, Credits, etc., box 13 (code H); and

Also, once this fuel is sold by the producer to another

Form 1099-PATR, Taxable Distributions Received

person for refining by such person into a fuel which will

From Cooperatives, box 10, or other notice of credit

meet these requirements, neither the producer nor any

allocation.

other person can use such fuel (or any fuel derived from

such fuel) to figure a second credit for qualified second

Partnerships, S corporations, cooperatives, estates,

generation biofuel production.

and trusts must always report the above credits on line 3.

Registration

All other filers figuring a separate credit on earlier lines

must also report the above credits on line 3. All others not

All producers of second generation biofuel must be

using earlier lines to figure a separate credit can report the

registered with the IRS. See Form 637, Application for

above credits directly on Form 3800, Part III, line 4c.

Registration.

Line 5

Recapture of Credit

Cooperatives. A cooperative described in section

You must pay a tax on each gallon of second generation

1381(a) can elect to allocate any part of the biofuel

biofuel at the rate you used to figure the credit if you do

producer credit to patrons of the cooperative. The credit is

not use the fuel for the purposes described under

allocated pro rata among the patrons eligible to share in

Qualified Second Generation Biofuel Production, earlier.

patronage dividends on the basis of the quantity or value

Report the tax on Form 720, Quarterly Federal Excise

of business done with or for the patrons for the tax year.

Tax Return.

If the cooperative is subject to the passive activity rules,

include on line 3 any Form 6478 credits from passive

Specific Instructions

activities disallowed for prior years and carried forward to

this year. Complete Form 8810, Corporate Passive

Line 1

Activity Loss and Credit Limitations, to determine the

allowed producer credits that can be allocated to patrons.

Enter the number of gallons of second generation biofuel

For details, see the Instructions for Form 8810.

sold or used after 2013 and before 2015 that meets the

conditions listed under Qualified Second Generation

The cooperative is deemed to have made the election

Biofuel Production, earlier. Multiply by the rate of $1.01

by completing line 5. However, the election is not effective

per gallon.

unless:

It is made on a timely filed tax return (including

Line 2

extensions), and

The credit shown in column (c) on line 1 must be included

The cooperative designates the apportionment in a

in income under “other income” on the applicable line of

written notice or on Form 1099-PATR mailed to its patrons

your income tax return, even if you cannot use all of the

during the payment period described in section 1382(d).

credit because of the tax liability limit. However, if you are

If you timely filed your return without making an

subject to the alternative minimum tax (AMT), this amount

election, you can still make the election by filing an

is not income in figuring AMT and must be subtracted

amended return within 6 months of the due date of the

when figuring your alternative minimum taxable income.

return (excluding extensions). Write “Filed pursuant to

Do this by including this amount on line 27 of Form 6251,

section 301.9100-2” on the amended return.

line 23 of Schedule I (Form 1041), or line 2o of Form

Once made, the election cannot be revoked.

4626.

Estates and trusts. Allocate the biofuel producer credit

Registration number. To claim a second generation

on line 4 between the estate or trust and the beneficiaries

biofuel producer credit on line 1, you must be registered

in the same proportion as income was allocated and enter

with the IRS. Enter your CB registration number in the

the beneficiaries’ share on line 5.

space provided. For more information, see Form 637 and

Publication 510, Excise Taxes.

If the estate or trust is subject to the passive activity

rules, include on line 3 any Form 6478 credits from

Line 3

passive activities disallowed for prior years and carried

Enter total biofuel producer credits from:

forward to this year. Complete Form 8582-CR, Passive

Activity Credit Limitations, to determine the allowed credit

Schedule K-1 (Form 1065), Partner's Share of Income,

Deductions, Credits, etc., box 15 (code I);

that must be allocated between the estate or trust and the

beneficiaries. For details, see the Instructions for Form

Schedule K-1 (Form 1120S), Shareholder's Share of

8582-CR.

Income, Deductions, Credits, etc., box 13 (code I);

-2-

Instructions for Form 6478 (2014)

Instructions For Form 6478 - Biofuel Producer Credit - 2014 Page 2

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