Instructions For Form 720 - Quarterly Federal Excise Tax Return

Information to be submitted. For claims on lines 10 and

diesel mixture must be derived from biomass, meet ASTM

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

D975, D396, or other equivalent standard approved by the

nonprofit educational organization or governmental unit to

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

whom the gasoline or aviation gasoline was sold and the

fuel additives under section 211 of the Clean Air Act.

number of gallons sold to each.

Renewable diesel also includes fuel derived from biomass

that meets a Department of Defense specification for military

Line 12. Alcohol Fuel Mixture Credit

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

a renewable diesel mixture used in aviation, kerosene is

Claimant. The person that produced and sold or used the

treated as if it is diesel fuel.

mixture in their trade or business is the only person eligible

4. The Certificate for Biodiesel and, if applicable,

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

Statement of Biodiesel Reseller must be attached to the first

alcohol in the mixture.

claim filed that is supported by the certificate or statement.

How to claim the credit. Any alcohol fuel mixture credit

For the renewable diesel mixture credit, you must edit the

must first be taken on Schedule C to reduce your taxable

certificate and, if applicable, statement to indicate that the

fuel liability for gasoline, diesel fuel, and kerosene reported

fuel to which the certificate and statement relate is

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

renewable diesel and state that the renewable diesel meets

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

the requirements discussed above under requirement 3.

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

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

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

Claimant. The person that produced and sold or used the

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

mixture in their trade or business is the only person eligible

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

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

taxable use in a motor vehicle or motorboat, and received

biodiesel or renewable diesel in the mixture.

the required statement from the buyer, (3) used an

Renewable diesel does not include any fuel derived

alternative fuel (not sold at retail or in bulk as previously

from coprocessing biomass (as defined in section

described) in a motor vehicle or motorboat, or (4) sold an

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

CAUTION

alternative fuel for use as a fuel in aviation is the only person

eligible to make this claim.

How to claim the credit. Any biodiesel or renewable

diesel mixture credit must first be taken on Schedule C to

For the alternative fuel mixture credit, the registered

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

alternative fueler that produced and sold or used the mixture

kerosene reported on Form 720. Any excess credit may be

as a fuel in their trade or business is the only person eligible

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

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

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

alternative fuel in the mixture.

information.

How to claim the credit. Any alternative fuel credit must

Claim requirements. The biodiesel mixture credit may not

first be taken on Schedule C to reduce your liability for

be claimed for biodiesel produced outside the United States

alternative fuel and CNG reported on Form 720. Any

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

alternative fuel mixture credit must first be taken on

States includes any possession of the United States.

Schedule C to reduce your taxable fuel liability for gasoline,

Requirements 1 and 2 must be met only if the credit

diesel fuel, and kerosene reported on Form 720. Any excess

exceeds the amount of taxable fuel liability reported.

alternative fuel credit and alternative fuel mixture credit may

Requirements 3 and 4 must be met for all claims.

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

4136.

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

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

Carbon capture requirement. A credit for liquid fuel

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

derived from coal (including peat) through the

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

Fischer-Tropsch process can be claimed only if the fuel is

be combined.

derived from coal produced at a gasification facility that

3. The biodiesel used to produce the biodiesel mixture

separates and sequesters not less than the following

must meet ASTM D6751 and meet the Environmental

percentage of the facility’s total carbon dioxide emissions.

•

Protection Agency’s (EPA) registration requirements for

50% for fuel produced after September 30, 2009, and

fuels and fuel additives under section 211 of the Clean Air

before December 31, 2009.

•

Act. The renewable diesel used to produce the renewable

75% for fuel produced after December 30, 2009.

-14-

Instructions for Form 720 (Rev. 10-2009)

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2009 Page 14

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