Form Ia 8864 - Biodiesel Blended Fuel Tax Credit

2011 IA 8864 Instructions

Beginning January 1, 2006, a Biodiesel Blended Fuel Tax Credit is available to retail dealers of diesel fuel who

operate motor fuel pumps at a retail motor fuel site. Tank wagons are considered retail motor fuel sites.

Beginning January 1, 2009, this credit must be calculated separately for each retail motor fuel site operated by

the taxpayer. To qualify for the tax credit, 50% or more of the gallons of diesel fuel sold by the dealer through

motor fuel pumps at that retail motor fuel site in Iowa must be biodiesel fuel containing a minimum percentage

of 2% by volume of biodiesel.

The amount of the credit is determined as follows: Three cents multiplied by the number of gallons sold during

2011, plus two cents multiplied by the number of gallons sold during 2012 that contain at least 2%, but less than

5% biodiesel (fiscal year filers only), plus four and one half cents multiplied by the number of gallons sold

during 2012 that contain a minimum of 5% biodiesel (fiscal year filers only).

Part I of the IA 8864 should be completed for each retail motor fuel site. Complete Part II of the IA 8864 only

once. Add the credit calculated for all retail motor fuel sites on line 10 of all Part I’s and place on Part II line 1

of the IA 8864. If only one retail site, place line 10 of Part I on Part II line 1 of the IA 8864. Enter in Part II of

the IA 148 Tax Credits Schedule.

If the taxpayer is a partnership, LLC, S corporation, estate, or trust, the credit must be allocated to the individual

owners in the ratio of each owner’s share of the earnings of the entity to the entity’s total earnings.

If the taxpayer has received any pass-through Biodiesel Blended Fuel Tax Credit from a partnership, LLC,

S corporation, estate, or trust, indicate that amount on line 2 of Part II of the IA 8864. Also enter the amount on

Part II of the IA 148 Tax Credits Schedule, providing the pass-through name and FEIN in Part IV of the IA 148

Tax Credits Schedule. If the taxpayer has received multiple pass-through Biodiesel Blended Fuel Tax Credit

claims, sum all claims and enter on line 2 of Part II of the IA 8864, but list the claims separately on Part II of the

IA 148 Tax Credits Schedule, providing each pass-through name and FEIN in Part IV.

Any credit in excess of the tax liability can be refunded. In lieu of the refund, the taxpayer may elect to have

the overpayment credited to the tax liability for the following year.

The IA 148 Tax Credit Schedule must be completed.

41-149b (08/23/11)

Form Ia 8864 - Biodiesel Blended Fuel Tax Credit - 2011 Page 2