Instructions For Form 6478 - Biofuel Producer Credit

2016

Department of the Treasury

Internal Revenue Service

Instructions for Form 6478

Biofuel Producer Credit

Section references are to the Internal Revenue Code

alcohol through additional distillation. Nor does it include

unless otherwise noted.

second generation biofuel that isn’t both produced in the

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

Future Developments

the United States or a U.S. possession.

For the latest information about developments related to

A qualified second generation biofuel mixture combines

Form 6478 and its instructions, such as legislation

second generation biofuel with gasoline or a special fuel.

enacted after they were published, go to

The producer of the mixture either:

Used it as a fuel, or

What's New

Sold it as fuel to another person.

The biodiesel and renewable diesel fuels credit is

Second Generation Biofuel

scheduled to expire for fuel sold or used after 2016. Don’t

Generally, second generation biofuel, for credit purposes,

claim a credit for fuel sold or used after 2016 on Form

is any liquid fuel, which:

6478 unless the credit is extended.

Is derived by, or from, qualified feedstocks;

General Instructions

Meets the registration requirements for fuels and fuel

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

Isn’t alcohol of less than 150 proof. In figuring the proof

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

of any alcohol, disregard any added denaturants

sale or use occurs. The 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’s

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 doesn’t 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 aren’t 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,

Production

second generation biofuel also includes certain liquid fuel,

which:

This is second generation biofuel which during the tax

year:

Is derived by, or from, any cultivated algae,

cyanobacteria, or lemna; and

1. Is sold by the producer to another person:

Isn’t 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

mixture (other than casual off-farm production),

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

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

person for refining by such other person into a liquid fuel

business, or

which will meet the registration requirements for fuels and

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

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

combination of water and sediment,

described in (1) above.

The ash content of the fuel is more than 1%

Qualified second generation biofuel production doesn’t

(determined by weight), or

include purchasing alcohol and increasing the proof of the

The fuel has an acid number greater than 25.

Aug 18, 2016

Cat. No. 13606U

Instructions For Form 6478 - Biofuel Producer Credit - 2016

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