Instructions For Form 720 - Quarterly Federal Excise Tax Return

Claimant. The person that produced and sold or used the

providing the registered ultimate vendor with an unexpired

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

mixture in their trade or business is the only person eligible

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

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

aviation gasoline.

biodiesel or renewable diesel in the mixture.

Allowable sales. The gasoline or aviation gasoline must

Renewable diesel does not include any fuel derived

have been sold during the period of claim for:

from coprocessing biomass (as defined in section

•

Use by a nonprofit educational organization, or

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

•

CAUTION

Use by a state or local government (including essential

government use by an Indian tribal government).

How to claim the credit. Any biodiesel or renewable

diesel mixture credit must first be taken on Schedule C to

Claim requirements. The following requirements must be

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

met.

kerosene reported on Form 720. Any excess credit may be

1. The claim must be for gasoline or aviation gasoline

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

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

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

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

information.

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

combined.

Claim requirements. The biodiesel mixture credit may not

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

be claimed for biodiesel produced outside the United States

following the earliest quarter of the claimant’s income tax

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

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

States includes any possession of the United States.

income taxpayer’s claim for January and February is due

Requirements 1 and 2 must be met only if the credit

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

exceeds the amount of taxable fuel liability reported.

filed by April 30.

Requirements 3 and 4 must be met for all claims.

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

Registration number. Enter your UV registration number

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

in the space provided.

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

Information to be submitted. For claims on lines 10 and

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

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

be combined.

nonprofit educational organization or governmental unit to

3. The biodiesel used to produce the biodiesel mixture

whom the gasoline or aviation gasoline was sold and the

must meet ASTM D6751 and meet the Environmental

number of gallons sold to each.

Protection Agency’s (EPA) registration requirements for

fuels and fuel additives under section 211 of the Clean Air

Line 12. Alcohol Fuel Mixture Credit

Act. The renewable diesel used to produce the renewable

Claimant. The person that produced and sold or used the

diesel mixture must be derived from biomass, meet ASTM

mixture in their trade or business is the only person eligible

D975, D396, or other equivalent standard approved by the

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

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

alcohol in the mixture.

fuel additives under section 211 of the Clean Air Act.

Renewable diesel also includes fuel derived from biomass

How to claim the credit. Any alcohol fuel mixture credit

that meets a Department of Defense specification for military

must first be taken on Schedule C to reduce your taxable

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

fuel liability for gasoline, diesel fuel, and kerosene reported

a renewable diesel mixture used in aviation, kerosene is

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

treated as if it is diesel fuel.

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

4. The Certificate for Biodiesel and, if applicable,

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

Statement of Biodiesel Reseller must be attached to the first

Claim requirements. The alcohol fuel mixture credit may

claim filed that is supported by the certificate or statement.

not be claimed for alcohol produced outside the United

For the renewable diesel mixture credit, you must edit the

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

certificate and, if applicable, statement to indicate that the

United States includes any possession of the United States.

fuel to which the certificate and statement relate is

The following requirements must be met if the credit

renewable diesel and state that the renewable diesel meets

exceeds the amount of taxable fuel liability reported.

the requirements discussed above under requirement 3.

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

See Model Certificate O and Model Statement S in Pub.

used during a period that is at least 1 week.

510. If the certificate and statement are not attached to

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

Form 720 because they are attached to a previously-filed

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

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

be combined.

with the following information.

a. Certificate identification number.

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

b. Total gallons of biodiesel or renewable diesel on

Claims on page 15.

certificate.

Registration number. If you are a registered blender or a

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

taxable fuel registrant, enter your registration number on line

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

12.

line 13.

Line 13. Biodiesel or Renewable Diesel

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

Mixture Credit

Claims on page 15.

Registration number. If you are a registered blender or a

The biodiesel and renewable diesel credit expired on

taxable fuel registrant, enter your registration number on line

December 31, 2009. See What’s New on page 1 for

more information.

13.

CAUTION

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Instructions for Form 720 (Rev. 7-2010)

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2010 Page 14

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