Instructions For Form 6478 - Biofuel Producer Credit

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 6478

Biofuel Producer Credit

Section references are to the Internal Revenue Code

produced in the United States or a U.S. possession and

unless otherwise noted.

used as a fuel in the United States or a U.S. possession.

Future Developments

A qualified second generation biofuel mixture combines

second generation biofuel with gasoline or a special fuel.

For the latest information about developments related to

The producer of the mixture either:

Form 6478 and its instructions, such as legislation

Used it as a fuel, or

enacted after they were published, go to

Sold it as fuel to another person.

Second Generation Biofuel

What's New

Generally, second generation biofuel, for credit purposes,

The section 40 biofuel producer credit has been

is any liquid fuel, which:

extended.

Is derived by, or from, qualified feedstocks;

Meets the registration requirements for fuels and fuel

General Instructions

additives established by the Environmental Protection

Agency under section 211 of the Clean Air Act (42 U.S.C.

Purpose of Form

7545); and

Use Form 6478 to figure your section 40 biofuel producer

Is not alcohol of less than 150 proof. In figuring the

credit. You claim the credit for the tax year in which the

proof of any alcohol, disregard any added denaturants

sale or use occurs. This credit consists of the second

(additives that make the alcohol unfit for human

generation biofuel producer credit.

consumption).

You may claim or elect not to claim the biofuel producer

A qualified feedstock is:

credit at any time within 3 years from the due date of your

Any lignocellulosic or hemicellulosic matter that is

return (determined without regard to extensions) on either

available on a renewable or recurring basis; and

an original or an amended return for the tax year of the

Any cultivated algae, cyanobacteria, or lemna.

sale or use.

However, second generation biofuel does not include

Partnerships, S corporations, cooperatives, estates,

any fuel if:

and trusts must file this form to claim the credit. All other

More than 4% of the fuel (determined by weight) is any

taxpayers are not required to complete or file this form if

combination of water and sediment,

their only source for this credit is a partnership, S

The ash content of the fuel is more than 1%

corporation, cooperative, estate, or trust. Instead, they

(determined by weight), or

can report this credit directly on line 4c in Part III of Form

The fuel has an acid number greater than 25.

3800, General Business Credit.

Special rules for algae. For sales described in (1) under

Qualified Second Generation Biofuel

Qualified Second Generation Biofuel Production, earlier,

second generation biofuel also includes certain liquid fuel,

Production

which:

This is second generation biofuel which during the tax

Is derived by, or from, any cultivated algae,

year:

cyanobacteria, or lemna; and

1. Is sold by the producer to another person—

Is not alcohol of less than 150 proof (disregard any

a. For use by the buyer in the buyer’s trade or

added denaturants).

business to produce a qualified second generation biofuel

But only if this fuel is sold by the producer to another

mixture (other than casual off-farm production),

person for refining by such other person into a liquid fuel

b. For use by the buyer as a fuel in a trade or

which will meet the registration requirements for fuels and

business, or

fuel additives established by the Environmental Protection

c. Who sells the second generation biofuel at retail to

Agency under section 211 of the Clean Air Act (42 U.S.C.

another person and puts the second generation biofuel in

7545), and not include any fuel if:

the retail buyer’s fuel tank; or

More than 4% of the fuel (determined by weight) is any

combination of water and sediment,

2. Is used or sold by the producer for any purpose

described in (1) above.

The ash content of the fuel is more than 1%

(determined by weight), or

Qualified second generation biofuel production does

The fuel has an acid number greater than 25.

not include purchasing alcohol and increasing the proof of

the alcohol through additional distillation. Nor does it

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

include second generation biofuel that is not both

person for refining by such person into a fuel which will

Dec 30, 2015

Cat. No. 13606U

Instructions For Form 6478 - Biofuel Producer Credit - 2015

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