Form 8907 Nonconventional Source Fuel Credit

2
TLS, have you
transmitted all R
text files for this
cycle update?

Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8907, PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8907

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

Signature

O.K. to print
Revised proofs
requested

OMB No. 1545-2008

2008

f
o
s
a
8
t
0
f
0
a
2
r
/
D /15
5
0
©

Attach to your tax return.
© See instructions.

Date the facility was placed in service

2

Barrel-of-oil equivalents

3

Enter the product of $3 multiplied by the inflation adjustment factor.
See instructions

4

Multiply line 2 by line 3

5

Add columns (a) and (b) on line 4

Attachment
Sequence No.

146

Identifying number

(a)
Qualified coke and coke
gas sold after 12/31/2007
and before 1/1/2009

(b)
Qualified coke and
coke gas
sold after 12/31/2008

5

6a Reduction due to government monies and subsidized financing. Enter
the total of government grants, proceeds of tax-exempt government
obligations, and subsidized energy financing for the project for this and
all prior tax years

6a

b Enter the total of additions to the capital account for the project for this
and all prior tax years
c Divide line 6a by line 6b. Show as a decimal to at least 4 places
d Multiply line 5 by line 6c

6b
6c
6d
7

Subtract line 6d from line 5

8a Reduction due to energy credit. Enter the total amount allowed under
section 38 for this and all prior tax years by reason of the energy
percentage with respect to the property used in the project

8a

b Enter the total amount recaptured with respect to the amount entered
on line 8a under section 49(b) or 50(a) for this and any prior tax year,
8b
and under section 38 for any prior tax year
c Subtract line 8b from line 8a. If zero or less, enter amount from line 7 on line 9 and go to line 10a
9

Date

Nonconventional Source Fuel Credit

1

7

Action

8c
9

Subtract line 8c from line 7

10a Reduction due to enhanced oil recovery credit (Form 8830). Enter the
total amount allowed for this and all prior tax years by reason of any
10a
enhanced oil recovery credit with respect to such project
b Enter the total amount of enhanced oil recovery credit recapture with
10b
respect to the amount on line 10a for any prior tax year
c Subtract line 10b from line 10a. If zero or less, enter the amount from line 9 on line 11 and go to line 12

10c

11

Subtract line 10c from line 9

11

12

Nonconventional source fuel credit from partnerships, S corporations, estates, and trusts

12

13

Add lines 11 and 12. Estates and trusts, go to line 14; partnerships and S corporations, report this
amount on Schedule K; all others, report this amount on Form 3800, line 1p

13

14

Amount allocated to beneficiaries of the estate or trust (see instructions)

14

15

Estates and trusts: subtract line 14 from line 13. Report this amount on Form 3800, line 1p

15

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37716X

Form

8907

(2008)

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8907, PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8907 (2008)

General Instructions

f
o
s
a
8
t
0
f
0
a
2
r
/
D /15
5
0

Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New

The nonconventional source fuel credit is not allowed
for the following fuels sold after 2007.
● Gas produced from biomass.

● Liquid, gaseous, or solid synthetic fuels produced from
coal.

Purpose of Form

2

Use Form 8907 to figure the nonconventional source fuel
credit. The credit is part of the general business credit. This
credit is allowed for qualified coke or coke gas you produced
and sold to an unrelated person during the tax year.

The coke or coke gas must not be produced in a facility that
produces coke or coke gas from petroleum-based products.
Taxpayers that are not partnerships, S corporations,
estates, or trusts, and whose only source of this credit is from
those pass-through entities, are not required to complete or
file this form. Instead, they can report this credit directly on
line 1p of Form 3800.

Coke or Coke Gas
The fuel qualifies for the credit if:
● It is not produced in a facility that produces coke or coke
gas from petroleum-based products,
● 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 January 1, 1993, or after June 30, 1998, and before
January 1, 2010,
● The original use of the facility began with the taxpayer, and
● The fuel is sold during the period beginning on the later of
January 1, 2006, or the date the facility is placed in service
and ending 4 years after the date the period began.
You cannot claim the credit for coke or coke gas if
the facility used to produce coke or coke gas was
used to produce other fuels and a credit for those
CAUTION
fuels was allowed for any preceding tax year by
section 45K(f) or 29(g), as applicable.

Specific Instructions
Line 1
Enter the date the facility was placed in service. If there is
more than one facility, attach a statement showing separately
for each facility the type of fuel it produced and the date it was
placed in service.

Line 2
Enter the barrel-of-oil equivalent of the qualified coke or coke
gas in the appropriate column. Figure the barrel-of-oil
equivalent by:
1. Determining the British Thermal Unit (BTU) value of the
amount of qualified coke or coke gas sold during the year
using prevailing industry standards, then
2. Dividing the BTU value of the fuel by 5.8 million.

The average barrel-of-oil equivalent for coke and
coke gas cannot exceed 4,000 barrels a day.
When determining the average, do not take into
CAUTION
account days before the date the facility was
placed in service.

Line 3

The $3 amount used to figure the credit must be adjusted by
multiplying it by the inflation adjustment factor for qualified
coke or coke gas for the calendar year in which the sale
occurs.
Inflation adjustment factor. The inflation adjustment factor
for coke or coke gas for each calendar year is provided in the
Internal Revenue Bulletin in April of the following year. The
Internal Revenue Bulletin is available at www.irs.gov/irb.

Line 6a

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

● Grants provided by the United States, a state, or a political
subdivision of the state for the project;
● Proceeds of a tax-exempt issue of state or local
government obligations used to provide financing for the
project; and
● The total amount of subsidized energy financing provided
directly or indirectly under a federal, state, or local program
provided for the project.

Line 14
Estates and trusts. Allocate the amount on line 13 between
the estate or trust and the beneficiaries in proportion to the
income allocable to each. On line 14, enter the beneficiaries’
allocated amount.

Paperwork Reduction Act Notice. We ask for the information
on this form to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We
need it to ensure that you are complying with these laws and
to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested
on a form that is 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
Learning about the law or the form

48min.
min.
x hr., x
9
57
min.
x min.

Preparing and sending the form to the IRS
min.
2x hr., x22min.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. See the instructions for
the tax return with which this form is filed.