Form Bbsc - Biodiesel Blending And Storage Credit

Form BBSC Instructions

Biodiesel is a fuel produced from monoalkyl esters of long-chain

primarily to blend biodiesel that is made entirely from

fatty acids derived from vegetable oils, renewable lipids, animal

Montana-produced feedstocks.

fats, or any combination of these ingredients. This fuel must meet

●

You blended biodiesel with petroleum diesel for sale during

the requirements of ASTM D6751, also known as the Standard

the current tax year.

Specification for Biodiesel Fuel (B-100) Blend Stock for Distillate

●

Your storage and blending equipment purchased is used in

Fuels, as adopted by the American Society for Testing and

Montana primarily to blend biodiesel for sale.

Materials.

●

You anticipate that your sales of biodiesel will be at least 2%

What information do I have to include with my return

of your total diesel sales by the end of the third year following

when I claim this credit?

the initial year you claim the credit.

●

Individuals. If you are filing a paper return, include a copy of

●

You are an owner, contract purchaser, or lessee who has a

Form BBSC with your individual income tax return.

beneficial interest in a business that blends biodiesel.

●

C corporations. If you are filing a paper return, include a

I purchased equipment to begin blending biodiesel with

copy of Form BBSC with your corporate license tax return.

petroleum diesel in a prior year but I have just begun

S corporations and partnerships. If you are filing a paper

●

blending the fuel for sale this year. Am I eligible for the

return, include Form BBSC with your Montana information

biodiesel blending and storage credit?

return Form CLT-4S or PR-1 and include a separate

Yes, you are. The credit is available in any year that you blend

statement identifying each owner and their proportionate

biodiesel with petroleum diesel for the purpose of resale. If you

share.

purchased the equipment in the two tax years before you began

You will need to complete a separate Form BBSC for each source

blending the biodiesel and the petroleum diesel, you can use the

you are receiving the credit from. For example, if you are a partner

costs from those years to calculate your current tax year biodiesel

in one partnership that qualified for this credit, and you, as an

blending and storage credit.

individual, also qualify for this credit, you would need to complete

two forms.

Part III. Credit Computation

If you file electronically, you do not need to mail this form to us

unless we contact you for a copy.

What costs do I use to calculate my biodiesel blending

and storage credit?

Am I required to recapture my credit that I previously

The costs used to calculate your credit are the amounts that you

received if I cease operating my business?

have invested in depreciable property that is used for storing or

Yes, you are. If you cease blending biodiesel with petroleum

blending biodiesel with petroleum diesel for sale.

diesel for sale for 12 continuous months, within five years from

the year that you initially claimed the credit, or if your blended

If I am claiming the biodiesel blending and storage

biodiesel sales were less than 2% of your total diesel sales by the

credit, can I also deduct the annual depreciation on my

end of your third year, you are required to recapture your credit in

investment?

the year you cease blending or at the end of your third year if your

Yes, you can. This credit is not in lieu of any depreciation or

sales were less than 2% of total diesel sales.

amortization deduction that you are allowed for your investment.

If the credit exceeds my tax liability, can I carry any

Part I. Partners in a Partnership or Shareholders of an

excess credit to another tax year?

S Corporation

Yes, you can carry forward unused credit for up to seven years.

If you complete Part I, do not complete Part II or III.

However, if you are not blending or storing biodiesel for blending

How do I claim my credit when I am a partner or

during a tax year, no credit can be claimed for the tax year.

shareholder in a partnership or S corporation?

Administrative Rules of Montana: 42.4.2504

If you received this credit from a partnership or S corporation,

Questions? Please call us toll free at (866) 859-2254 (in Helena,

you will need to fill out Part I in its entirety. Your portion of the

444-6900).

credit can be obtained from the Montana Schedule K-1 that you

received from the entity. In addition to reporting your portion of the

credit, you will need to provide the partnership’s or S corporation’s

name and Federal Employer Identification Number.

If you are a partner or shareholder in more than one partnership

or S corporation, you will need to complete a separate Form

BBSC for each entity you are receiving the credit from.

Part II. Qualifications

What requirements do I have to meet in order to qualify

for the biodiesel blending and storage credit?

In order for you to qualify for this credit, the following requirements

have to be met:

●

Your investment is for depreciable property that is used

Form Bbsc - Biodiesel Blending And Storage Credit - 2012 Page 2

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