Instructions For Form 8864 - Biodiesel And Renewable Diesel Fuels Credit

2014

Department of the Treasury

Internal Revenue Service

Instructions for Form 8864

Biodiesel and Renewable Diesel Fuels Credit

Section references are to the Internal Revenue Code

(EPA) under section 211 of the Clean Air Act, and the

unless otherwise noted.

requirements of the American Society of Testing and

Materials (ASTM) D6751.

General Instructions

Biodiesel includes both agri-biodiesel and biodiesel

other than agri-biodiesel. Biodiesel does not include the

Future Developments

following.

For the latest information about developments related to

Fuel produced outside the United States or a U.S.

Form 8864 and its instructions, such as legislation

possession for use as a fuel outside the United States or a

enacted after they were published, go to

U.S. possession.

form8864.

Any liquid that is eligible for the alcohol and cellulosic

What's New

biofuel fuels credit (Form 6478).

The biodiesel and renewable diesel fuels credit was

Agri-Biodiesel

extended to cover fuel sold or used in 2014. The credit is

Agri-biodiesel means biodiesel derived solely from virgin

scheduled to expire for fuel sold or used after 2014. Do

oils, including esters derived from virgin vegetable oils

not claim a credit for fuel sold or used after 2014 on Form

from corn, soybeans, sunflower seeds, cottonseeds,

8864 unless the credit is extended.

canola, crambe, rapeseeds, safflowers, flaxseeds, rice

Purpose of Form

bran, mustard seeds, and camelina, and from animal fats.

Use Form 8864 to figure your biodiesel and renewable

Renewable Diesel

diesel fuels credit. Claim the credit for the tax year in

Renewable diesel means liquid fuel derived from biomass

which the sale or use occurs. This credit consists of the:

(defined below) that meets the registration requirements

Biodiesel credit,

for fuels and fuel additives established by the EPA under

Renewable diesel credit,

section 211 of the Clean Air Act, and the requirements of

Biodiesel mixture credit,

the ASTM D975 or D396, or other equivalent standard

Renewable diesel mixture credit, and

approved by the IRS, or a Department of Defense

Small agri-biodiesel producer credit.

specification for military jet fuel or an ASTM specification

Definitions and Special Rules

for aviation turbine fuel. For aviation uses, treat kerosene

as diesel fuel when figuring a renewable diesel mixture

credit.

Certification

To claim a credit on lines 1 through 6, you generally must

Renewable diesel does not include the following.

attach the Certificate for Biodiesel and, if applicable,

Fuel produced outside the United States or a U.S.

Statement of Biodiesel Reseller, to Form 8864. To claim a

possession for use as a fuel outside the United States or a

credit on lines 3 or 6, the certificate must indicate at all

U.S. possession.

appropriate locations that the fuel to which it relates is

Any fuel derived from co-processing biomass with

renewable diesel and state that the fuel meets the

feedstock that is not biomass.

requirements discussed under Renewable Diesel, later.

Any liquid eligible for the alcohol and cellulosic biofuel

However, if the certificate or statement was attached to a

fuels credit (Form 6478).

previously filed claim, attach a statement with the

Biomass. Biomass means any organic material other

following information.

than oil and natural gas (or any product thereof) and coal

Certificate identification number.

(including lignite) or any product thereof.

Total gallons of agri-biodiesel, biodiesel other than

agri-biodiesel, or renewable diesel on the certificate.

Biodiesel and Renewable Diesel Credits

Total gallons claimed on Schedule 3 (Form 8849).

The biodiesel or renewable diesel reported on lines 1

Total gallons claimed on Schedule C (Form 720).

through 3 must not be a mixture. The credits are for

Total gallons claimed on Form 4136.

biodiesel or renewable diesel which during the tax year

See Notice 2005-62, 2005-35 I.R.B. 443, or Pub. 510,

you:

Excise Taxes, for the model certificate and statement.

Used as a fuel in a trade or business, or

Sold at retail to another person and put in the fuel tank

Biodiesel

of that person's vehicle.

Biodiesel means the monoalkyl esters of long chain fatty

acids derived from plant or animal matter which meet the

However, no credit is allowed for fuel used in a trade or

registration requirements for fuels and fuel additives

business that was purchased in a retail sale described

established by the Environmental Protection Agency

above.

Feb 02, 2015

Cat. No. 66373S

Instructions For Form 8864 - Biodiesel And Renewable Diesel Fuels Credit - 2014

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