Instructions For Form 6478 - Biofuel Producer Credit

which will meet the registration requirements for fuels and

Partnerships, S corporations, cooperatives, estates,

fuel additives established by the Environmental Protection

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

Agency under section 211 of the Clean Air Act (42 U.S.C.

All other taxpayers:

7545), and not include any fuel if:

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

More than 4% of the fuel (determined by weight) is any

line 4c; and

combination of water and sediment,

Don’t file Form 6478.

The ash content of the fuel is more than 1%

Line 5

(determined by weight), or

The fuel has an acid number greater than 25.

Cooperatives. A cooperative described in section

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

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

person for refining by such person into a fuel which will

producer credit to patrons of the cooperative. The credit is

meet these requirements, neither the producer nor any

allocated pro rata among the patrons eligible to share in

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

patronage dividends on the basis of the quantity or value

such fuel) to figure a second credit for qualified second

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

generation biofuel production.

If the cooperative is subject to the passive activity rules,

Registration

include on line 3 any Form 6478 credits from passive

activities disallowed for prior years and carried forward to

All producers of second generation biofuel must be

this year. Complete Form 8810, Corporate Passive

registered with the IRS. See Form 637, Application for

Activity Loss and Credit Limitations, to determine the

Registration.

allowed producer credits that can be allocated to patrons.

Recapture of Credit

For details, see the Instructions for Form 8810.

The cooperative is deemed to have made the election

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

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

generation biofuel at the rate you used to figure the credit

unless:

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

It is made on a timely filed tax return (including

Qualified Second Generation Biofuel Production, earlier.

extensions), and

Report the tax on Form 720, Quarterly Federal Excise

The cooperative designates the apportionment in a

Tax Return.

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

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

Specific Instructions

If you timely filed your return without making an

election, you can still make the election by filing an

Lines 1 and 2

amended return within 6 months of the due date of the

return (excluding extensions). Write “Filed pursuant to

These lines are reserved in case Congress extends the

section 301.9100-2” on the amended return.

credit to apply to fuel sold or used after December 31,

2016. When using these lines to figure amounts on this or

Once made, the election can’t be revoked.

other tax forms or worksheets, these lines should be

Estates and trusts. Allocate the biofuel producer credit

considered to be zero.

on line 4 between the estate or trust and the beneficiaries

Line 3

in the same proportion as income was allocated and enter

the beneficiaries’ share on line 5.

Partners, S corporation shareholders, patrons, or

If the estate or trust is subject to the passive activity

beneficiaries of fiscal year entities enter total biofuel

rules, include on line 3 any Form 6478 credits from

producer credits from:

passive activities disallowed for prior years and carried

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

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

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

Activity Credit Limitations, to determine the allowed credit

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

that must be allocated between the estate or trust and the

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

beneficiaries. See the Instructions for Form 8582-CR.

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

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

Form 1099-PATR, Taxable Distributions Received

From Cooperatives, box 10, or other notice of credit

allocation.

-2-

Instructions for Form 6478 (2017)

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

Related Articles

Related forms

Related Categories