Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 14 of 18) in pdf

providing the registered ultimate vendor with an unexpired

Renewable diesel does not include any fuel derived

certificate. See Model Certificate M in Pub. 510. Only one

from coprocessing biomass (as defined in section

claim may be filed with respect to any gallon of gasoline or

45K(c)(3)) with a feedstock that is not biomass.

CAUTION

aviation gasoline.

How to claim the credit. Any biodiesel or renewable

Allowable sales. The gasoline or aviation gasoline must

diesel mixture credit must first be taken on Schedule C to

have been sold during the period of claim for:

reduce your taxable fuel liability for gasoline, diesel fuel, and

•

Use by a nonprofit educational organization, or

kerosene reported on Form 720. Any excess credit may be

•

Use by a state or local government (including essential

taken on Schedule C (Form 720), Form 8849, Form 4136, or

government use by an Indian tribal government).

Form 8864. See Notice 2005-4 and item 4 below for more

information.

Claim requirements. The following requirements must be

Claim requirements. The biodiesel mixture credit may not

met.

be claimed for biodiesel produced outside the United States

1. The claim must be for gasoline or aviation gasoline

for use as a fuel outside the United States. The United

sold or used during a period that is at least 1 week.

States includes any possession of the United States.

2. The amount of the claim must be at least $200. To

Requirements 1 and 2 must be met only if the credit

meet this minimum, amounts from lines 10 and 11 may be

exceeds the amount of taxable fuel liability reported.

combined.

Requirements 3 and 4 must be met for all claims.

3. Claims must be filed by the last day of the first quarter

1. The claim must be for a biodiesel or renewable diesel

following the earliest quarter of the claimant’s income tax

mixture sold or used during a period that is at least 1 week.

year included in the claim. For example, a calendar year

2. The amount of the claim must be at least $200. To

income taxpayer’s claim for January and February is due

meet this minimum, amounts from lines 12, 13, and 14 may

June 30 if filed on Form 8849. However, Form 720 must be

be combined.

filed by April 30.

3. The biodiesel used to produce the biodiesel mixture

must meet ASTM D6751 and meet the Environmental

Registration number. Enter your UV registration number

Protection Agency’s (EPA) registration requirements for

in the space provided.

fuels and fuel additives under section 211 of the Clean Air

Information to be submitted. For claims on lines 10 and

Act. The renewable diesel used to produce the renewable

11, attach a separate sheet with the name and TIN of each

diesel mixture must be derived from biomass, meet ASTM

nonprofit educational organization or governmental unit to

D975, D396, or other equivalent standard approved by the

whom the gasoline or aviation gasoline was sold and the

IRS, and meet EPA’s registration requirements for fuels and

number of gallons sold to each.

fuel additives under section 211 of the Clean Air Act.

Renewable diesel also includes fuel derived from biomass

Line 12. Alcohol Fuel Mixture Credit

that meets a Department of Defense specification for military

jet fuel or an ASTM specification for aviation turbine fuel. For

Claimant. The person that produced and sold or used the

a renewable diesel mixture used in aviation, kerosene is

mixture in their trade or business is the only person eligible

treated as if it is diesel fuel.

to make this claim. The credit is based on the gallons of

4. The Certificate for Biodiesel and, if applicable,

alcohol in the mixture.

Statement of Biodiesel Reseller must be attached to the first

How to claim the credit. Any alcohol fuel mixture credit

claim filed that is supported by the certificate or statement.

must first be taken on Schedule C to reduce your taxable

For the renewable diesel mixture credit, you must edit the

fuel liability for gasoline, diesel fuel, and kerosene reported

certificate and, if applicable, statement to indicate that the

on Form 720. Any excess credit may be taken on Schedule

fuel to which the certificate and statement relate is

C (Form 720), Form 8849, Form 4136, or Form 6478. See

renewable diesel and state that the renewable diesel meets

Notice 2005-4 and Notice 2005-62 for more information.

the requirements discussed above under requirement 3.

See Model Certificate O and Model Statement S in Pub.

Claim requirements. The alcohol fuel mixture credit may

510. If the certificate and statement are not attached to

not be claimed for alcohol produced outside the United

Form 720 because they are attached to a previously-filed

States for use as a fuel outside the United States. The

claim on Schedule 3 (Form 8849), attach a separate sheet

United States includes any possession of the United States.

with the following information.

The following requirements must be met if the credit

a. Certificate identification number.

exceeds the amount of taxable fuel liability reported.

b. Total gallons of biodiesel or renewable diesel on

1. The claim must be for an alcohol fuel mixture sold or

certificate.

used during a period that is at least 1 week.

c. Total gallons claimed on Schedule 3 (Form 8849).

2. The amount of the claim must be at least $200. To

d. Total gallons claimed on Schedule C (Form 720),

meet this minimum, amounts from lines 12, 13, and 14 may

line 13.

be combined.

If requirements 1 and 2 above are not met, see Annual

Claims on page 15.

Registration number. If you are a registered blender or a

taxable fuel registrant, enter your registration number on line

13.

12.

Line 14. Alternative Fuel Credit and

Line 13. Biodiesel or Renewable Diesel

Alternative Fuel Mixture Credit

Mixture Credit

Claimant. For the alternative fuel credit, the registered

Claimant. The person that produced and sold or used the

alternative fueler who (1) sold an alternative fuel at retail and

mixture in their trade or business is the only person eligible

delivered it into the fuel supply tank of a motor vehicle or

to make this claim. The credit is based on the gallons of

motorboat, (2) sold an alternative fuel, delivered it in bulk for

biodiesel or renewable diesel in the mixture.

taxable use in a motor vehicle or motorboat, and received

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Instructions For Form 720 - Quarterly Federal Excise Tax Return Page 14

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