8896
Low Sulfur Diesel Fuel Production Credit
OMB No. 1545-1914
Form
(Rev. October 2015)
Attach to your tax return.
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Attachment
Department of the Treasury
142
Information about Form 8896 and its instructions is at
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Sequence No.
Internal Revenue Service
Identifying number
Name(s) shown on return
1
Low sulfur diesel fuel produced (in gallons) .
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1
2
Multiply line 1 by $.05 .
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2
3
3
Qualified costs limitation (see instructions) .
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4
Total low sulfur diesel fuel production credits allowed for all prior tax years .
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4
5
Subtract line 4 from line 3
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5
6
6
Enter the smaller of line 5 or line 2 .
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Low sulfur diesel fuel production credit from partnerships, S corporations, and cooperatives
7
(see instructions)
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7
8
Add lines 6 and 7. Cooperatives, go to line 9. Partnerships and S corporations, stop here and
report this amount on Schedule K. All others, stop here and report this amount on Form 3800,
Part III, line 1m .
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8
9
Amount allocated to patrons of the cooperative (see instructions)
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9
10
10
Cooperatives, subtract line 9 from line 8. Report this amount on Form 3800, Part III, line 1m
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General Instructions
Qualified Costs
For each facility, qualified costs are costs paid or incurred to
Section references are to the Internal Revenue Code unless
comply with the highway diesel fuel sulfur control requirements
otherwise noted.
of the Environmental Protection Agency (EPA) during the period
Future Developments
beginning January 1, 2003, and ending on the earlier of:
• The date 1 year after the date on which the refiner must
For the latest information about developments related to Form
comply with these EPA requirements with respect to such
8896 and its instructions, such as legislation enacted after they
facility; or
were published, go to
• December 31, 2009.
Purpose of Form
Qualified costs include costs for the construction of new
Use Form 8896 to claim the low sulfur diesel fuel production
process operation units or the dismantling and reconstruction
credit.
of existing process units to be used in the production of low
sulfur diesel fuel, associated adjacent or offsite equipment
The credit generally is 5 cents for every gallon of low sulfur
(including tankage, catalyst, and power supply), engineering,
diesel fuel produced by a qualified small business refiner during
construction period interest, and site work.
the tax year. However, the total credits allowed for all tax years
cannot be more than the refiner’s qualified costs limitation on
In addition, the small business refiner must obtain certification
line 3. This credit is part of the general business credit.
from the IRS (which will consult with the EPA) that the
taxpayer’s qualified costs will result in compliance with the
Partnerships, S corporations, and cooperatives must file this
applicable EPA regulations. This certification must be obtained
form to claim the credit. All other taxpayers are not
not later than June 29, 2008, or, if later, the date that is 30
required to complete or file this form if their only source for this
months after the first day of the first tax year in which the credit
credit is a partnership, S corporation, or cooperative.
is determined. For details, see Rev. Proc. 2007-69, 2007-49
Instead, they can report this credit directly on line 1m in Part III
I.R.B. 1137, available at
of Form 3800, General Business Credit.
Unless you elect not to take this credit, your
Definitions
deductions will be reduced by the amount of your
TIP
credit. For details, see section 280C(d).
Low Sulfur Diesel Fuel
This is diesel fuel with a sulfur content of 15 parts per million or
Additional Information
less.
For more information, see section 45H.
Small Business Refiner
Specific Instructions
A small business refiner generally is a refiner of crude oil with an
average daily domestic refinery run or average retained
production for all facilities that did not exceed 205,000 barrels
Use lines 1 through 6 to figure any low sulfur diesel fuel
production credit from your own trade or business.
for the 1-year period ending on December 31, 2002. To figure
the average daily domestic refinery run or retained production,
Line 1
only include refineries that were refineries of the refiner or a
related person (within the meaning of section 613A(d)(3)) on
Enter the number of gallons of diesel fuel produced with a sulfur
April 1, 2003. However, a refiner is not a small business refiner
content of 15 parts per million or less.
for a tax year if more than 1,500 individuals are engaged in the
refinery operations of the business on any day during the tax
year.
8896
For Paperwork Reduction Act Notice, see instructions.
Form
(Rev. 10-2015)
Cat. No. 37704F