Fillable Form 8907 - Nonconventional Source Fuel Credit

Form 8907 (2013)

Page

General Instructions

The average barrel-of-oil equivalent for coke and coke

▲

gas cannot exceed 4,000 barrels a day. When

Section references are to the Internal Revenue Code unless

determining the average, do not take into account

otherwise noted.

CAUTION

days before the date the facility was placed in service.

Future Developments

Line 3

For the latest information about developments related to Form

The $3 amount used to figure the credit must be adjusted by

8907 and its instructions, such as legislation enacted after they

multiplying it by the inflation adjustment factor for qualified coke

were published, go to

or coke gas for the calendar year in which the sale occurs.

What's New

Inflation adjustment factor. The inflation adjustment factor for

coke or coke gas for each calendar year is provided in the

The nonconventional source fuel credit is not available for fuel

Internal Revenue Bulletin in April of the following year. The

sold after 2013. To claim a credit for fuel sold in 2013, the

Internal Revenue Bulletin is available at

facility producing the fuel must have been placed in service

Line 6a

during 2009 so that some fuel sold in 2013 was sold during the

4 year period that began when the facility was placed in service.

Enter the sum, for this and all prior tax years, of:

The credit is not available for fuel produced in a facility placed in

• Grants provided by the United States, a state, or a political

service after 2009. For details, see Coke or Coke Gas, later.

subdivision of the state for the project;

Purpose of Form

• Proceeds of a tax-exempt issue of state or local government

obligations used to provide financing for the project; and

Use Form 8907 to figure the nonconventional source fuel credit.

The credit is part of the general business credit. This credit is

• The total amount of subsidized energy financing provided

allowed for qualified coke or coke gas you produced and sold to

directly or indirectly under a federal, state, or local program

an unrelated person during the tax year.

provided for the project.

The coke or coke gas must not be produced in a facility that

Line 14

produces coke or coke gas from petroleum based products.

Estates and trusts. Allocate the nonconventional source fuel

Taxpayers that are not partnerships, S corporations, estates,

credit on line 13 between the estate or trust and the

or trusts, and whose only source of this credit is from those

beneficiaries in the same proportion as income was allocated

pass-through entities, are not required to complete or file this

and enter the beneficiaries’ share on line 14.

form. Instead, they can report this credit directly on Form 3800,

General Business Credit.

If the estate or trust is subject to the passive activity rules,

include on line 12 any nonconventional source fuel credits from

Coke or Coke Gas

passive activities disallowed for prior years and carried forward

The fuel qualifies for the credit if:

to this year. Complete Form 8582-CR, Passive Activity Credit

Limitations, to determine the allowed credit that must be

• It is not produced in a facility that produces coke or coke gas

allocated between the estate or trust and the beneficiaries. For

from petroleum based products;

details, see the Instructions for Form 8582-CR.

• It is produced by the taxpayer in a facility located in the United

States or a U.S. possession that was placed in service before

Paperwork Reduction Act Notice. We ask for the information

January 1, 1993, or after June 30, 1998, and before January 1,

on this form to carry out the Internal Revenue laws of the United

2010;

States. You are required to give us the information. We need it

• The original use of the facility began with the taxpayer; and

to ensure that you are complying with these laws and to allow

• The fuel is sold during the period beginning on the later of

us to figure and collect the right amount of tax.

January 1, 2006, or the date the facility is placed in service and

You are not required to provide the information requested on

ending 4 years after the date the period began.

a form that is subject to the Paperwork Reduction Act unless

You cannot claim the credit for coke or coke gas if the

the form displays a valid OMB control number. Books or

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records relating to a form or its instructions must be retained as

facility used to produce coke or coke gas was used to

long as their contents may become material in the

produce other fuels and a credit for those fuels was

CAUTION

administration of any Internal Revenue law. Generally, tax

allowed for any preceding tax year by section 45K(f)

returns and return information are confidential, as required by

or 29(g), as applicable.

section 6103.

Specific Instructions

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated burden

Line 1

for individual taxpayers filing this form is approved under OMB

Enter the date the facility was placed in service. If there is more

control number 1545-0074 and is included in the estimates

than one facility, attach a statement showing separately for each

shown in the instructions for their individual income tax return.

facility the type of fuel it produced and the date it was placed in

The estimated burden for all other taxpayers who file this form is

service.

shown below.

Line 2

Recordkeeping

. 6 hr., 27 min.

Enter the barrel-of-oil equivalent of the qualified coke or coke

Learning about the law or the form .

. 35 min.

gas in the appropriate column. Figure the barrel-of-oil equivalent

Preparing and sending the form to the IRS .

. 43 min.

by:

If you have comments concerning the accuracy of these time

1. Determining the British Thermal Unit (BTU) value of the

estimates or suggestions for making this form simpler, we would

amount of qualified coke or coke gas sold during the year using

be happy to hear from you. See the instructions for the tax

prevailing industry standards, then

return with which this form is filed.

2. Dividing the BTU value of the fuel by 5.8 million.

Form 8907 - Nonconventional Source Fuel Credit - 2013 Page 2

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