Instructions For Form 6478 - Biofuel Producer Credit

2017

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.

business, or

c. Who sells the second generation biofuel at retail to

Future Developments

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.

IRS.gov/Form6478.

Qualified second generation biofuel production doesn’t

What's New

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:

CAUTION

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:

General Instructions

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

7545); and

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

consumption).

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,

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,

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

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

person for refining by such other person into a liquid fuel

Jan 23, 2018

Cat. No. 13606U

Instructions For Form 6478 - Biofuel Producer Credit - 2016

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