Fillable Form 8896 - Low Sulfur Diesel Fuel Production Credit printable pdf download

8896

Low Sulfur Diesel Fuel Production Credit

OMB No. 1545-1914

Form

(Rev. January 2008)

Attach to your tax return.

Attachment

Department of the Treasury

142

Sequence No.

Internal Revenue Service

Name(s) shown on return

Identifying number

Low sulfur diesel fuel produced (in gallons)

Multiply line 1 by $.05

Qualified costs limitation (see instructions)

Total low sulfur diesel fuel production credits allowed for all prior tax years

Subtract line 4 from line 3

Enter the smaller of line 5 or line 2

Low sulfur diesel fuel production credit from partnerships, S corporations, and cooperatives

Add lines 6 and 7. Cooperatives go to line 9; partnerships and S corporations, report this amount

on Schedule K; all others, report this amount on the applicable line of Form 3800 (e.g., line 1n

of the 2007 Form 3800)

Amount allocated to the patrons of the cooperative

Subtract line 9 from line 8. Report this amount on the applicable line of Form 3800 (e.g., line 1n

of the 2007 Form 3800)

Unless you elect not to take this

General Instructions

exceed 205,000 barrels for the 1-year

credit, your deductions will be

period ending on December 31, 2002. To

TIP

Section references are to the Internal

reduced by the amount of your

figure the average daily domestic refinery

Revenue Code.

credit. For details, see section

run or retained production, only include

280C(d).

refineries that were refineries of the refiner

What’s New

or a related person (within the meaning of

Additional Information

Rev. Proc. 2007-69 provides guidance

section 613A(d)(3)) on April 1, 2003.

on obtaining the required certification. See

However, a refiner is not a small business

For more information, see section 45H.

Qualified Costs.

refiner for a tax year if more than 1,500

individuals are engaged in the refinery

Specific Instructions

The Tax Technical Corrections Act of

operations of the business on any day

2007 clarified the adjustment required

Use lines 1 through 6 to figure any low

during the tax year.

when you deduct qualified costs under

sulfur diesel fuel production credit from

section 179B and also claim this credit in

Qualified Costs

your own trade or business.

tax years ending after December 31, 2002.

For each facility, qualified costs are costs

See TIP on this page.

Cooperative Election To Allocate

paid or incurred to comply with the

Credit to Patrons

highway diesel fuel sulfur control

Purpose of Form

requirements of the Environmental

A cooperative described in section 1381(a)

Use Form 8896 to claim the low sulfur

Protection Agency (EPA) during the period

can elect to allocate any part of the low

diesel fuel production credit.

beginning January 1, 2003, and ending on

sulfur diesel fuel production credit among

the earlier of:

the patrons of the cooperative. To make

The credit generally is 5 cents for every

the election, attach a statement to the

gallon of low sulfur diesel fuel produced by

The date 1 year after the date on which

effect that the cooperative elects to

a qualified small business refiner during the

the refiner must comply with these EPA

allocate the credit among the patrons

tax year. However, the total credits allowed

requirements with respect to such facility

eligible to share in patronage dividends on

for all tax years cannot be more than the

the basis of the quantity or value of

refiner’s qualified costs limitation on line 3.

business done with or for the patrons for

December 31, 2009.

This credit is part of the general business

the tax year.

credit.

Qualified costs include costs for the

The election is not effective unless:

construction of new process operation

Taxpayers that are not partnerships, S

units or the dismantling and reconstruction

corporations, or cooperatives, and whose

Made on a timely filed return (including

of existing process units to be used in the

only source of this credit is from those

extensions). However, if the cooperative

production of low sulfur diesel fuel,

pass-through entities, are not required to

made an election on a tax return for a tax

associated adjacent or offsite equipment

complete or file this form. Instead, they

year ending after December 31, 2002, and

(including tankage, catalyst, and power

can report this credit directly on Form

filed before June 15, 2006, but failed to

supply), engineering, construction period

3800.

attach the required statement, the

interest, and site work.

cooperative may attach that statement to

Definitions

In addition, the small business refiner

the first federal income tax return it files

must obtain certification from the IRS

after June 14, 2006.

Low Sulfur Diesel Fuel

(which will consult with the EPA) that the

The cooperative designates the

This is diesel fuel with a sulfur content of

taxpayer’s qualified costs will result in

apportionment in a written notice mailed

15 parts per million or less.

compliance with the applicable EPA

to its patrons during the payment period

regulations. This certification must be

Small Business Refiner

described in section 1382(d).

obtained not later than June 29, 2008, or,

A small business refiner generally is a

if later, the date that is 30 months after the

refiner of crude oil with an average daily

first day of the first tax year in which the

domestic refinery run or average retained

credit is determined. For details, see Rev.

production for all facilities that did not

Proc. 2007-69 (available in I.R.B. 2007-49

at ).

8896

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37704F

Form

(Rev. 1-2008)

Form 8896 - Low Sulfur Diesel Fuel Production Credit

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