Department of the Treasury
Internal Revenue Service
Instructions for Form 6478
Biofuel Producer Credit
Section references are to the Internal Revenue Code
b. For use by the buyer as a fuel in a trade or
unless otherwise noted.
c. Who sells the second generation biofuel at retail to
another person and puts the second generation biofuel in
For the latest information about developments related to
the retail buyer’s fuel tank; or
Form 6478 and its instructions, such as legislation
2. Is used or sold by the producer for any purpose
enacted after they were published, go to
described in (1) above.
Qualified second generation biofuel production doesn’t
include purchasing alcohol and increasing the proof of the
The biodiesel and renewable diesel fuels credit expired
alcohol through additional distillation. Nor does it include
for fuel sold or used after December 31, 2016. Don’t claim
second generation biofuel that isn’t both produced in the
a credit for fuel sold or used after 2016 on Form 6478
United States or a U.S. possession and used as a fuel in
unless the credit is extended.
the United States or a U.S. possession.
At the time these instructions went to print, the
A qualified second generation biofuel mixture combines
biofuel producer credit formerly claimed on lines 1
second generation biofuel with gasoline or a special fuel.
and 2 had expired. You can’t claim the credit on
The producer of the mixture either:
lines 1 and 2 for fuel sold or used after 2016. Lines 1 and
Used it as a fuel, or
2 are now shown as “Reserved for future use” in case
Sold it as fuel to another person.
Congress extends the credit for 2017. To find out if
Second Generation Biofuel
legislation extended the credit so you can claim it on your
2017 return, go to IRS.gov/Extenders.
Generally, second generation biofuel, for credit purposes,
is any liquid fuel, which:
Is derived by, or from, qualified feedstocks;
Meets the registration requirements for fuels and fuel
additives established by the Environmental Protection
Purpose of Form
Agency under section 211 of the Clean Air Act (42 U.S.C.
Use Form 6478 to figure your section 40 biofuel producer
credit. You claim the credit for the tax year in which the
Isn’t alcohol of less than 150 proof. In figuring the proof
sale or use occurs. The credit consists of the second
of any alcohol, disregard any added denaturants
generation biofuel producer credit.
(additives that make the alcohol unfit for human
You may claim or elect not to claim the biofuel producer
credit at any time within 3 years from the due date of your
A qualified feedstock is:
return (determined without regard to extensions) on either
Any lignocellulosic or hemicellulosic matter that’s
an original or an amended return for the tax year of the
available on a renewable or recurring basis; and
sale or use.
Any cultivated algae, cyanobacteria, or lemna.
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.
Qualified Second Generation Biofuel
Special rules for algae. For sales described in (1) under
Qualified Second Generation Biofuel Production, earlier,
second generation biofuel also includes certain liquid fuel,
This is second generation biofuel which during the tax
Is derived by, or from, any cultivated algae,
1. Is sold by the producer to another person:
cyanobacteria, or lemna; and
Isn’t alcohol of less than 150 proof (disregard any
a. For use by the buyer in the buyer’s trade or
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
person for refining by such other person into a liquid fuel
Jan 23, 2018
Cat. No. 13606U