Instructions for IRS Form 6478 - Biofuel Producer Credit 2017

January 1, 2017 "Instructions For Irs Form 6478 - Biofuel Producer Credit" contain the latest filing requirements for the IRS-issued Form 6478. Download your copy of the instructions by clicking the link below.

IRS Form 6478 is a tax form issued by the United States Internal Revenue Service.

ADVERTISEMENT
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 6478
Biofuel Producer Credit
Section references are to the Internal Revenue Code
alcohol through additional distillation. Nor does it include
unless otherwise noted.
second generation biofuel that isn’t both produced in the
United States or a U.S. possession and used as a fuel in
Future Developments
the United States or a U.S. possession.
For the latest information about developments related to
A qualified second generation biofuel mixture combines
Form 6478 and its instructions, such as legislation
second generation biofuel with gasoline or a special fuel.
enacted after they were published, go to
IRS.gov/
The producer of the mixture either:
form6478
.
Used it as a fuel, or
What’s New
Sold it as fuel to another person.
Second Generation Biofuel
The biofuel producer credit was retroactively extended for
fuel sold or used in calendar year 2017 only. Don’t claim
Generally, second generation biofuel, for credit purposes,
the credit for fuel sold or used after 2017 on Form 6478
is any liquid fuel, which:
unless the credit is extended.
Is derived by, or from, qualified feedstocks;
General Instructions
Meets the registration requirements for fuels and fuel
additives established by the Environmental Protection
Agency under section 211 of the Clean Air Act (42 U.S.C.
Purpose of Form
7545); and
Use Form 6478 to figure your section 40 biofuel producer
Isn’t alcohol of less than 150 proof. In figuring the proof
credit. You claim the credit for the tax year in which the
of any alcohol, disregard any added denaturants
sale or use occurs. The credit consists of the second
(additives that make the alcohol unfit for human
generation biofuel producer credit.
consumption).
You may claim or elect not to claim the biofuel producer
A qualified feedstock is:
credit at any time within 3 years from the due date of your
Any lignocellulosic or hemicellulosic matter that’s
return (determined without regard to extensions) on either
available on a renewable or recurring basis; and
an original or an amended return for the tax year of the
Any cultivated algae, cyanobacteria, or lemna.
sale or use.
However, second generation biofuel doesn’t include
Partnerships, S corporations, cooperatives, estates,
any fuel if:
and trusts must file this form to claim the credit. All other
More than 4% of the fuel (determined by weight) is any
taxpayers aren’t required to complete or file this form if
combination of water and sediment,
their only source for this credit is a partnership, S
The ash content of the fuel is more than 1%
corporation, cooperative, estate, or trust. Instead, they
(determined by weight), or
can report this credit directly on line 4c in Part III of Form
The fuel has an acid number greater than 25.
3800, General Business Credit.
Special rules for algae. For sales described in (1) under
Qualified Second Generation Biofuel
Qualified Second Generation Biofuel Production, earlier,
Production
second generation biofuel also includes certain liquid fuel,
which:
This is second generation biofuel which during the tax
year:
Is derived by, or from, any cultivated algae,
cyanobacteria, or lemna; and
1. Is sold by the producer to another person:
Isn’t alcohol of less than 150 proof (disregard any
a. For use by the buyer in the buyer’s trade or
added denaturants).
business to produce a qualified second generation biofuel
mixture (other than casual off-farm production),
But only if this fuel is sold by the producer to another
b. For use by the buyer as a fuel in a trade or
person for refining by such other person into a liquid fuel
business, or
which will meet the registration requirements for fuels and
fuel additives established by the Environmental Protection
c. Who sells the second generation biofuel at retail to
Agency under section 211 of the Clean Air Act (42 U.S.C.
another person and puts the second generation biofuel in
7545), and not include any fuel if:
the retail buyer’s fuel tank; or
More than 4% of the fuel (determined by weight) is any
2. Is used or sold by the producer for any purpose
combination of water and sediment,
described in (1) above.
The ash content of the fuel is more than 1%
Qualified second generation biofuel production doesn’t
(determined by weight), or
include purchasing alcohol and increasing the proof of the
The fuel has an acid number greater than 25.
Mar 01, 2018
Cat. No. 13606U
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 6478
Biofuel Producer Credit
Section references are to the Internal Revenue Code
alcohol through additional distillation. Nor does it include
unless otherwise noted.
second generation biofuel that isn’t both produced in the
United States or a U.S. possession and used as a fuel in
Future Developments
the United States or a U.S. possession.
For the latest information about developments related to
A qualified second generation biofuel mixture combines
Form 6478 and its instructions, such as legislation
second generation biofuel with gasoline or a special fuel.
enacted after they were published, go to
IRS.gov/
The producer of the mixture either:
form6478
.
Used it as a fuel, or
What’s New
Sold it as fuel to another person.
Second Generation Biofuel
The biofuel producer credit was retroactively extended for
fuel sold or used in calendar year 2017 only. Don’t claim
Generally, second generation biofuel, for credit purposes,
the credit for fuel sold or used after 2017 on Form 6478
is any liquid fuel, which:
unless the credit is extended.
Is derived by, or from, qualified feedstocks;
General Instructions
Meets the registration requirements for fuels and fuel
additives established by the Environmental Protection
Agency under section 211 of the Clean Air Act (42 U.S.C.
Purpose of Form
7545); and
Use Form 6478 to figure your section 40 biofuel producer
Isn’t alcohol of less than 150 proof. In figuring the proof
credit. You claim the credit for the tax year in which the
of any alcohol, disregard any added denaturants
sale or use occurs. The credit consists of the second
(additives that make the alcohol unfit for human
generation biofuel producer credit.
consumption).
You may claim or elect not to claim the biofuel producer
A qualified feedstock is:
credit at any time within 3 years from the due date of your
Any lignocellulosic or hemicellulosic matter that’s
return (determined without regard to extensions) on either
available on a renewable or recurring basis; and
an original or an amended return for the tax year of the
Any cultivated algae, cyanobacteria, or lemna.
sale or use.
However, second generation biofuel doesn’t include
Partnerships, S corporations, cooperatives, estates,
any fuel if:
and trusts must file this form to claim the credit. All other
More than 4% of the fuel (determined by weight) is any
taxpayers aren’t required to complete or file this form if
combination of water and sediment,
their only source for this credit is a partnership, S
The ash content of the fuel is more than 1%
corporation, cooperative, estate, or trust. Instead, they
(determined by weight), or
can report this credit directly on line 4c in Part III of Form
The fuel has an acid number greater than 25.
3800, General Business Credit.
Special rules for algae. For sales described in (1) under
Qualified Second Generation Biofuel
Qualified Second Generation Biofuel Production, earlier,
Production
second generation biofuel also includes certain liquid fuel,
which:
This is second generation biofuel which during the tax
year:
Is derived by, or from, any cultivated algae,
cyanobacteria, or lemna; and
1. Is sold by the producer to another person:
Isn’t alcohol of less than 150 proof (disregard any
a. For use by the buyer in the buyer’s trade or
added denaturants).
business to produce a qualified second generation biofuel
mixture (other than casual off-farm production),
But only if this fuel is sold by the producer to another
b. For use by the buyer as a fuel in a trade or
person for refining by such other person into a liquid fuel
business, or
which will meet the registration requirements for fuels and
fuel additives established by the Environmental Protection
c. Who sells the second generation biofuel at retail to
Agency under section 211 of the Clean Air Act (42 U.S.C.
another person and puts the second generation biofuel in
7545), and not include any fuel if:
the retail buyer’s fuel tank; or
More than 4% of the fuel (determined by weight) is any
2. Is used or sold by the producer for any purpose
combination of water and sediment,
described in (1) above.
The ash content of the fuel is more than 1%
Qualified second generation biofuel production doesn’t
(determined by weight), or
include purchasing alcohol and increasing the proof of the
The fuel has an acid number greater than 25.
Mar 01, 2018
Cat. No. 13606U
Also, once this fuel is sold by the producer to another
Form 1099-PATR, Taxable Distributions Received
person for refining by such person into a fuel which will
From Cooperatives, box 10, or other notice of credit
meet these requirements, neither the producer nor any
allocation.
other person can use such fuel (or any fuel derived from
Partnerships, S corporations, cooperatives, estates,
such fuel) to figure a second credit for qualified second
and trusts must always report the above credits on line 3.
generation biofuel production.
All other taxpayers:
Registration
Report the above credits directly on Form 3800, Part III,
line 4c; and
All producers of second generation biofuel must be
Don’t file Form 6478.
registered with the IRS. See Form 637, Application for
Line 5
Registration.
Recapture of Credit
Cooperatives. A cooperative described in section
1381(a) can elect to allocate any part of the biofuel
You must pay a tax (recapture) on each gallon of second
producer credit to patrons of the cooperative. The credit is
generation biofuel at the rate you used to figure the credit
allocated pro rata among the patrons eligible to share in
if you don’t use the fuel for the purposes described under
patronage dividends on the basis of the quantity or value
Qualified Second Generation Biofuel Production, earlier.
of business done with or for the patrons for the tax year.
Report the tax on Form 720, Quarterly Federal Excise
If the cooperative is subject to the passive activity rules,
Tax Return.
include on line 3 any Form 6478 credits from passive
Specific Instructions
activities disallowed for prior years and carried forward to
this year. Complete Form 8810, Corporate Passive
Activity Loss and Credit Limitations, to determine the
Line 1
allowed producer credits that can be allocated to patrons.
Enter the number of gallons of second generation biofuel
For details, see the Instructions for Form 8810.
sold or used after 2016 and before 2018 that meets the
The cooperative is deemed to have made the election
conditions listed under Qualified Second Generation
by completing line 5. However, the election isn’t effective
Biofuel Production, earlier. Multiply by the rate of $1.01
unless:
per gallon.
It’s made on a timely filed tax return (including
Line 2
extensions), and
The cooperative designates the apportionment in a
The credit shown in column (c) on line 1 must be included
written notice or on Form 1099-PATR mailed to its patrons
in income under “other income” on the applicable line of
during the payment period described in section 1382(d).
your income tax return, even if you can’t use all of the
If you timely filed your return without making an
credit because of the tax liability limit. However, if you’re
election, you can still make the election by filing an
subject to the alternative minimum tax (AMT), this amount
amended return within 6 months of the due date of the
isn’t income in figuring AMT and must be subtracted when
return (excluding extensions). Write “Filed pursuant to
figuring your alternative minimum taxable income. Do this
section 301.9100-2” on the amended return.
by including this amount on line 27 of Form 6251, line 23
of Schedule I (Form 1041), or line 2o of Form 4626.
Once made, the election can’t be revoked.
Registration number. To claim a second generation
Estates and trusts. Allocate the biofuel producer credit
biofuel producer credit on line 1, you must be registered
on line 4 between the estate or trust and the beneficiaries
with the IRS. Enter your SB registration number in the
in the same proportion as income was allocated and enter
space provided. For more information, see Form 637 and
the beneficiaries’ share on line 5.
Pub. 510, Excise Taxes.
If the estate or trust is subject to the passive activity
Line 3
rules, include on line 3 any Form 6478 credits from
passive activities disallowed for prior years and carried
Enter total biofuel producer credits from:
forward to this year. Complete Form 8582-CR, Passive
Schedule K-1 (Form 1065), Partner’s Share of Income,
Activity Credit Limitations, to determine the allowed credit
Deductions, Credits, etc., box 15 (code I);
that must be allocated between the estate or trust and the
Schedule K-1 (Form 1120S), Shareholder’s Share of
beneficiaries. See the Instructions for Form 8582-CR.
Income, Deductions, Credits, etc., box 13 (code I);
Schedule K-1 (Form 1041), Beneficiary’s Share of
Income, Deductions, Credits, etc., box 13 (code H); and
-2-
Instructions for Form 6478 (2017)
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You’re required to give us the information. We need it to ensure that you’re complying with these laws and
to allow us to figure and collect the right amount of tax.
You aren’t required to provide the information requested on a form that’s subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the
estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers
who file this form is shown below.
Recordkeeping
2hr, 9 min.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form
53 min.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preparing and sending the form to the IRS
58 min.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,
we’d be happy to hear from you. See the instructions for the tax return with which this form is filed.
-3-
Instructions for Form 6478 (2017)

Download Instructions for IRS Form 6478 - Biofuel Producer Credit 2017

765 times
Rate
4.5(4.5 / 5) 38 votes
ADVERTISEMENT
Page of 3