Instructions For Form 720 - Quarterly Federal Excise Tax Return

nonprofit educational organization or governmental unit to

claim filed that is supported by the certificate or statement.

whom the gasoline or aviation gasoline was sold and the

For the renewable diesel mixture credit, you must edit the

number of gallons sold to each.

certificate and, if applicable, statement to indicate that the

fuel to which the certificate and statement relate is

Line 12. Alcohol Fuel Mixture Credit

renewable diesel and state that the renewable diesel meets

the requirements discussed above under requirement 3.

Claimant. The person that produced and sold or used the

See Model Certificate O and Model Statement S in Pub.

mixture in their trade or business is the only person eligible

510. If the certificate and statement are not attached to

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

Form 720 because they are attached to a previously-filed

alcohol in the mixture.

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

How to claim the credit. Any alcohol fuel mixture credit

with the following information.

must first be taken on Schedule C to reduce your taxable

a. Certificate identification number.

fuel liability for gasoline, diesel fuel, and kerosene reported

b. Total gallons of biodiesel or renewable diesel on

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

certificate.

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

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

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

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

Claim requirements. The alcohol fuel mixture credit may

line 13.

not be claimed with respect to alcohol produced outside the

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

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

The United States includes any possession of the United

Claims on page 14.

States. The following requirements must be met if the credit

Registration number. If you are a registered blender or a

exceeds the amount of taxable fuel liability reported.

taxable fuel registrant, enter your registration number on line

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

13.

used during a period that is at least 1 week.

Line 14. Alternative Fuel Credit and

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

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

Alternative Fuel Mixture Credit

be combined.

Claimant. For the alternative fuel credit, the registered

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

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

Claims on page 14.

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

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

Registration number. If you are a registered blender or a

taxable use in a motor vehicle or motorboat, and received

taxable fuel registrant, enter your registration number on line

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

12.

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

Line 13. Biodiesel or Renewable Diesel

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

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

Mixture Credit

eligible to make this claim.

Claimant. The person that produced and sold or used the

For the alternative fuel mixture credit, the registered

mixture in their trade or business is the only person eligible

alternative fueler that produced and sold or used the mixture

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

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

biodiesel or renewable diesel in the mixture.

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

Renewable diesel does not include any fuel derived

alternative fuel in the mixture.

from coprocessing biomass (as defined in section

How to claim the credit. Any alternative fuel credit must

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

CAUTION

first be taken on Schedule C to reduce your liability for

alternative fuel and CNG reported on Form 720. Any

How to claim the credit. Any biodiesel or renewable

alternative fuel mixture credit must first be taken on

diesel mixture credit must first be taken on Schedule C to

Schedule C to reduce your taxable fuel liability for gasoline,

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

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

kerosene reported on Form 720. Any excess credit may be

alternative fuel credit and alternative fuel mixture credit may

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

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

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

4136.

information.

Claim requirements. The alternative fuel credit and

Claim requirements. The biodiesel mixture credit may not

alternative fuel mixture credit may not be claimed with

be claimed with respect to biodiesel produced outside the

respect to alternative fuel produced outside the United

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

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

The United States includes any possession of the United

United States includes any possession of the United States.

States. Requirements 1 and 2 must be met only if the credit

To claim either credit, you must be registered by the IRS. To

exceeds the amount of taxable fuel liability reported.

claim the alternative fuel mixture credit, the following

Requirements 3 and 4 must be met for all claims.

requirements must be met if the credit exceeds the amount

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

of taxable fuel liability reported.

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

1. The claim must be for an alternative fuel mixture sold

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

or used (as described earlier under Claimant) during a

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

period that is at least 1 week.

be combined.

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

3. The biodiesel used to produce the biodiesel mixture

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

must meet ASTM D6751 and meet the Environmental

be combined.

Protection Agency’s (EPA) registration requirements for

fuels and fuel additives under section 211 of the Clean Air

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

Act. The renewable diesel used to produce the renewable

Claims on page 14.

diesel mixture must be derived from biomass (as defined in

Registration number. You must enter your registration

section 45K(c)(3)) using a thermal depolymerization

number in the space provided.

process, meet ASTM D975 or D396, and meet EPA’s

registration requirements for fuels and fuel additives under

Form 720X. If you are not registered, you cannot make

section 211 of the Clean Air Act.

a claim at this time. Use Form 637 to apply for registration.

4. The Certificate for Biodiesel and, if applicable,

After you are registered by the IRS, file Form 720X to claim

Statement of Biodiesel Reseller must be attached to the first

the credit for this period.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 13

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