Instructions For Form 6478 - Biofuel Producer Credit

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

Form 1099-PATR, Taxable Distributions Received

person for refining by such person into a fuel which will

From Cooperatives, box 10, or other notice of credit

meet these requirements, neither the producer nor any

allocation.

other person can use such fuel (or any fuel derived from

Partnerships, S corporations, cooperatives, estates,

such fuel) to figure a second credit for qualified second

and trusts must always report the above credits on line 3.

generation biofuel production.

All other taxpayers:

Registration

Report the above credits directly on Form 3800, Part III,

line 4c; and

All producers of second generation biofuel must be

Don’t file Form 6478.

registered with the IRS. See Form 637, Application for

Line 5

Registration.

Recapture of Credit

Cooperatives. A cooperative described in section

1381(a) can elect to allocate any part of the biofuel

You must pay a tax (recapture) on each gallon of second

producer credit to patrons of the cooperative. The credit is

generation biofuel at the rate you used to figure the credit

allocated pro rata among the patrons eligible to share in

if you don’t use the fuel for the purposes described under

patronage dividends on the basis of the quantity or value

Qualified Second Generation Biofuel Production, earlier.

of business done with or for the patrons for the tax year.

Report the tax on Form 720, Quarterly Federal Excise

If the cooperative is subject to the passive activity rules,

Tax Return.

include on line 3 any Form 6478 credits from passive

Specific Instructions

activities disallowed for prior years and carried forward to

this year. Complete Form 8810, Corporate Passive

Activity Loss and Credit Limitations, to determine the

Line 1

allowed producer credits that can be allocated to patrons.

Enter the number of gallons of second generation biofuel

For details, see the Instructions for Form 8810.

sold or used after 2015 and before 2017 that meets the

The cooperative is deemed to have made the election

conditions listed under Qualified Second Generation

by completing line 5. However, the election isn’t effective

Biofuel Production, earlier. Multiply by the rate of $1.01

unless:

per gallon.

It is made on a timely filed tax return (including

Line 2

extensions), and

The cooperative designates the apportionment in a

The credit shown in column (c) on line 1 must be included

written notice or on Form 1099-PATR mailed to its patrons

in income under “other income” on the applicable line of

during the payment period described in section 1382(d).

your income tax return, even if you can’t use all of the

If you timely filed your return without making an

credit because of the tax liability limit. However, if you’re

election, you can still make the election by filing an

subject to the alternative minimum tax (AMT), this amount

amended return within 6 months of the due date of the

isn’t income in figuring AMT and must be subtracted when

return (excluding extensions). Write “Filed pursuant to

figuring your alternative minimum taxable income. Do this

section 301.9100-2” on the amended return.

by including this amount on line 27 of Form 6251, line 23

of Schedule I (Form 1041), or line 2o of Form 4626.

Once made, the election can’t be revoked.

Registration number. To claim a second generation

Estates and trusts. Allocate the biofuel producer credit

biofuel producer credit on line 1, you must be registered

on line 4 between the estate or trust and the beneficiaries

with the IRS. Enter your SB registration number in the

in the same proportion as income was allocated and enter

space provided. For more information, see Form 637 and

the beneficiaries’ share on line 5.

Pub. 510, Excise Taxes.

If the estate or trust is subject to the passive activity

Line 3

rules, include on line 3 any Form 6478 credits from

passive activities disallowed for prior years and carried

Enter total biofuel producer credits from:

forward to this year. Complete Form 8582-CR, Passive

Schedule K-1 (Form 1065), Partner's Share of Income,

Activity Credit Limitations, to determine the allowed credit

Deductions, Credits, etc., box 15 (code I);

that must be allocated between the estate or trust and the

Schedule K-1 (Form 1120S), Shareholder's Share of

beneficiaries. See the Instructions for Form 8582-CR.

Income, Deductions, Credits, etc., box 13 (code I);

Schedule K-1 (Form 1041), Beneficiary's Share of

Income, Deductions, Credits, etc., box 13 (code H); and

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Instructions for Form 6478 (2016)

Instructions For Form 6478 - Biofuel Producer Credit - 2016 Page 2

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