Fillable Form 8864 - Biodiesel And Renewable Diesel Fuels Credit

Form 8864 (2013)

Page

Biodiesel includes both agri-biodiesel and biodiesel

diesel fuel when figuring a renewable diesel mixture credit

other than agri-biodiesel. Biodiesel does not include:

for certain aviation fuel (see Renewable Diesel above).

The producer of the mixture either:

• Fuel produced outside the United States or a U.S.

possession for use as a fuel outside the United States or

• Used it as fuel, or

a U.S. possession.

• Sold it as fuel to another person.

• Any liquid that is eligible for the alcohol and cellulosic

The credit is available only to the producer of the

biofuel fuels credit (Form 6478).

mixture. The producer must use or sell the mixture in a

Agri-Biodiesel

trade or business and the credit is available only for the

year the mixture is sold or used. The credit is not allowed

Agri-biodiesel means biodiesel derived solely from virgin

for casual off-farm production of a qualified mixture.

oils, including esters derived from virgin vegetable oils

from corn, soybeans, sunflower seeds, cottonseeds,

Caution. You may be liable for a 24.4 cents per gallon

canola, crambe, rapeseeds, safflowers, flaxseeds, rice

excise tax on biodiesel or renewable diesel used to

bran, mustard seeds, and camelina, and from animal fats.

produce blended taxable fuel outside the bulk transfer

terminal system if the mixture is diesel fuel. Report the tax

Renewable Diesel

liability on Form 720 on the line for IRS No. 60(c) for the

Renewable diesel means liquid fuel derived from biomass

quarter in which the mixture was sold or used.

(defined below) that meets the registration requirements

Diesel fuel. Diesel fuel means:

for fuels and fuel additives established by the EPA under

• Any liquid that, without further processing or blending,

section 211 of the Clean Air Act, and the requirements of

is suitable for use as a fuel in a diesel-powered highway

the ASTM D975 or D396, or other equivalent standard

vehicle or diesel-powered train, and

approved by the IRS, or a Department of Defense

• Transmix.

specification for military jet fuel or an ASTM specification

for aviation turbine fuel. For aviation uses, treat kerosene

A liquid is suitable for this use if the liquid has practical

as diesel fuel when figuring a renewable diesel mixture

and commercial fitness for use in the propulsion engine of

credit.

a diesel-powered highway vehicle or diesel-powered

train. A liquid may possess this practical and commercial

Renewable diesel does not include:

fitness even though the specified use is not the liquid's

• Fuel produced outside the United States or a U.S.

predominant use. However, a liquid does not possess this

possession for use as a fuel outside the United States or

practical and commercial fitness solely by reason of its

a U.S. possession.

possible or rare use as a fuel in the propulsion engine of a

• Any fuel derived from co-processing biomass with

diesel-powered highway vehicle or diesel-powered train.

feedstock that is not biomass.

Diesel fuel does not include gasoline, kerosene, excluded

• Any liquid eligible for the alcohol and cellulosic biofuel

liquid, No. 5 and No. 6 fuel oils covered by ASTM

fuels credit (Form 6478).

specification D396, or F-76 (Fuel Naval Distillate) covered

Biomass. Biomass means any organic material other

by military specification MIL-F-16884.

than oil and natural gas (or any product thereof) and coal

An excluded liquid is any liquid that (a) contains less

(including lignite) or any product thereof.

than 4% normal paraffins, or (b) has a (i) distillation range

Biodiesel and Renewable Diesel Credits

of 125º F or less, (ii) sulfur content of 10 parts per million

or less, and (iii) minimum color of +27 Saybolt. For

The biodiesel or renewable diesel reported on lines 1

example, biodiesel is always an excluded liquid because

through 3 must not be a mixture. The credits are for

it does not contain paraffins. But a biodiesel mixture may

biodiesel or renewable diesel which during the tax year

not be an excluded liquid.

you:

Transmix means a by-product of refined products

• Used as a fuel in a trade or business, or

created by the mixing of different specification products

• Sold at retail to another person and put in the fuel tank

during pipeline transportation.

of that person's vehicle.

Qualified Agri-Biodiesel Production

However, no credit is allowed for fuel used in a trade or

Qualified agri-biodiesel production means up to 15 million

business that was purchased in a retail sale described

gallons of agri-biodiesel which is produced by an eligible

above.

small agri-biodiesel producer (defined below), and which

Caution. You may be liable for a 24.4 cents per gallon

during the tax year:

excise tax on biodiesel or renewable diesel you sold (in

1. Is sold by such producer to another person:

your trade or business) for use or used in a diesel-

a. For use by such person in the production of a

powered highway vehicle or diesel-powered train. Report

qualified biodiesel mixture in such other person's trade or

the tax liability on Form 720 on the line for IRS No. 79 for

business (other than casual off-farm production),

the quarter in which the biodiesel was sold or used or IRS

No. 60(b) for the quarter in which the renewable diesel

b. For use by such person as a fuel in a trade or

was sold or used.

business, or

Biodiesel and Renewable Diesel Mixture Credits

c. Who sells such agri-biodiesel at retail to another

person and places such agri-biodiesel in the fuel tank of

The biodiesel or renewable diesel reported on lines 4

such other person, or

through 6 must be used to make a qualified mixture. A

2. Is used or sold by such producer for any purpose

qualified mixture combines biodiesel or renewable diesel

described in (1).

with diesel fuel (defined below), determined without

regard to any use of kerosene. But treat the kerosene as

Form 8864 - Biodiesel And Renewable Diesel Fuels Credit - 2013 Page 2

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