Credit for Alcohol Used as Fuel

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Form

6478

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Date

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OMB No. 1545-0231

Alcohol and Cellulosic Biofuel Fuels Credit

2008

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Department of the Treasury
Internal Revenue Service

Signature

See separate instructions.

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Attachment
Sequence No.

Attach to your tax return.

83

Identifying number

Name(s) shown on return

Caution: You cannot claim any amounts on Form 6478 that you claimed (or will claim) on Schedule C (Form 720), Form 8849, or
Form 4136.
Type of Fuel

1

Qualified ethanol (other than cellulosic biofuel) fuel
production (see instructions for election)
Alcohol (other than cellulosic biofuel) 190 proof or greater
sold or used before 2009
Alcohol (other than cellulosic biofuel) 190 proof or greater
sold or used after 2008
Alcohol (other than cellulosic biofuel) less than 190 proof but
at least 150 proof sold or used before 2009
Alcohol (other than cellulosic biofuel) less than 190 proof but
at least 150 proof sold or used after 2008

2
3
4
5

Cellulosic biofuel produced and sold or used after 2008
Alcohol (other than cellulosic biofuel) 190 proof or greater in
an alcohol fuel mixture sold or used before 2009
Alcohol (other than cellulosic biofuel) 190 proof or greater in
an alcohol fuel mixture sold or used after 2008
Alcohol (other than cellulosic biofuel) less than 190 proof but
at least 150 proof in an alcohol fuel mixture sold or used
before 2009

6
7
8
9

(a)
Number of Gallons
Sold or Used

(b)
Rate

1

$.10

2

$.51

3

$.45

4

$.3778

5

$.3333

6

$1.01

7

$.51

8

$.45

9

$.3778

10

$.3333

10

Alcohol (other than cellulosic biofuel) less than 190 proof but
at least 150 proof in an alcohol fuel mixture sold or used after
2008

11

Cellulosic biofuel in a cellulosic biofuel fuel mixture produced
$1.01
11
and sold or used after 2008
Add the amounts in column (c) on lines 1 through 11. Include this amount in your income for
2008 (see instructions)
Alcohol and cellulosic biofuel fuels credit from a partnership, S corporation, cooperative, estate,
or trust (see instructions)
Add lines 12 and 13. Partnerships and S corporations, report this amount on Schedule K. All
others, go to line 15
Alcohol and cellulosic biofuel fuels credit included on line 14 from passive activities (see
instructions)

12
13
14
15

(c)
Column (a) x Column (b)

*

12
13
14
15

16

Subtract line 15 from line 14

16

17
18

Alcohol and cellulosic biofuel fuels credit allowed for 2008 from a passive activity (see instructions)
Carryforward from 2007 of the alcohol fuel credit and carryback from 2009 of the alcohol and
cellulosic biofuel fuels credit (see instructions)
Add lines 16 through 18. Cooperatives, estates, and trusts, go to line 20. All others, report this
amount on Form 3800, line 29c
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see
instructions)
Cooperatives, estates, and trusts. Subtract line 20 from line 19. Report this amount on Form
3800, line 29c

17

19
20
21

*

18
19
20

21
Only the rate for ethanol is shown. See instructions for lines 2 through 5 and 7 through 10 for rates for alcohol other than ethanol.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 13605J

Form

6478

(2008)

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Instructions for Form 6478

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Form 6478 (2008)

Instructions for Form 6478

Department of the Treasury
Internal Revenue Service

(Rev. December 2008)
Alcohol and Cellulosic Biofuel Fuels Credit
Section references are to the Internal Revenue Code unless
otherwise noted.

General Instructions
What’s New

• The cellulosic biofuel producer credit is added to the credit by
the Food, Conservation, and Energy Act of 2008. Thus, the
name of the credit and the form is changed to “Alcohol and
Cellulosic Biofuel Fuels Credit.”
• The form is separated from the instructions for the December
2008 revision.
• The tax liability limit is no longer figured on this form; instead,
it must be figured on Form 3800, General Business Credit.

Purpose of Form
Use Form 6478 to figure your alcohol and cellulosic biofuel
fuels credit. You claim the credit for the tax year in which the
sale or use occurs. This credit consists of the:
• Alcohol mixture credit,
• Alcohol credit,
• Small ethanol producer credit, and
• Cellulosic biofuel producer credit.
You may claim or elect not to claim the alcohol and cellulosic
biofuel fuels credit at any time within 3 years from the due date
of your return (determined without regard to extensions) on
either an original or an amended return for the tax year of the
sale or use.
Before claiming a credit on Form 6478, the alcohol fuel
mixture credit must be taken against any section 4081
CAUTION liability on Form 720. Any credit in excess of the section
4081 liability can be taken as a claim for payment on Form
8849 or an income tax credit on Form 4136.

!

Definitions and Special Rules
Qualified Ethanol Fuel Production
This is ethanol produced by an eligible small ethanol producer
(defined below) which during the tax year:
1. Does not exceed 15 million gallons (not counting any
qualified cellulosic biofuel production defined below);
2. Is sold by the producer to another person —
• For use by the buyer in the buyer’s trade or business to
produce a qualified mixture (other than casual off-farm
production),
• For use by the buyer as a fuel in a trade or business, or
• Who sells the ethanol at retail to another person and puts
the ethanol in the retail buyer’s fuel tank; or
3. Is used or sold by the producer for any purpose
described in 2 above.

Qualified Cellulosic Biofuel Fuel Production
This is any cellulosic biofuel produced after 2008, and during
the tax year:
1. Is sold by the producer to another person —
• For use by the buyer in the buyer’s trade or business to
produce a qualified cellulosic biofuel mixture (other than casual
off-farm production),
• For use by the buyer as a fuel in a trade or business, or
• Who sells the cellulosic biofuel at retail to another person
and puts the cellulosic biofuel in the retail buyer’s fuel tank.

2. Does not include any alcohol which is purchased by the
producer if the producer increases the proof of the alcohol by
additional distillation.
3. Is used or sold by the producer for any purpose Page
described in 1 above.

2

Eligible Small Ethanol Producer
This is a person who, at all times during the tax year, has a
productive capacity for alcohol of 60 million gallons or less. This
capacity includes alcohol made from petroleum, natural gas,
coal, peat, and alcohol of less than 150 proof.

Alcohol
Alcohol, for credit purposes, includes ethanol and methanol but
does not include the following.
• Alcohol produced from petroleum, natural gas, or coal
(including peat). Methanol produced from methane gas formed
in waste disposal sites is not alcohol produced from natural gas,
and is included for credit purposes.
• Alcohol of less than 150 proof. In figuring the proof of any
alcohol, disregard any denaturants (additives that make the
alcohol unfit for human consumption). The volume of alcohol
includes any denaturant up to 5% (2% for fuel sold or used after
2008) of the volume of the alcohol and denaturant combined.
The alcohol must not be a mixture with gasoline or a special
fuel (other than as a denaturant). The credit is for alcohol which
during the tax year you:
• Used as a fuel in a trade or business, or
• Sold at retail to another person and put in the fuel tank of that
person’s vehicle.
However, no credit is allowed for alcohol you used as a fuel
in a trade or business if that alcohol was sold in a retail sale
described above.

Cellulosic Biofuel
Cellulosic biofuel, for credit purposes, means any liquid fuel
produced after 2008, which:
• Is produced from any lignocellulosic or hemicellulosic matter
that is available on a renewable or recurring basis, and
• 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. 7545), and
• Is not alcohol of less than 150 proof. In figuring the proof of
any alcohol, disregard any denaturants (additives that make the
alcohol unfit for human consumption).

Alcohol or Cellulosic Biofuel Fuel Mixture
The alcohol or cellulosic biofuel must be used to make a
qualified mixture. A qualified alcohol mixture combines alcohol
with gasoline or a special fuel. A qualified cellulosic biofuel
mixture combines cellulosic biofuel with gasoline or a special
fuel. The producer of the mixture either:
• Used it as fuel, or
• Sold it as fuel to another person.
The credit is available only to the producer who blends the
mixture. The producer must use or sell the mixture in a trade or
business and the credit is available only for the year the mixture
is sold or used. The credit is not allowed for casual off-farm
production of a qualified mixture.

Registration
All producers and importers of alcohol with a proof of at least
190 and all producers of cellulosic biofuel must be registered
with the IRS. See Form 637, Application for Registration (For
Certain Excise Tax Activities).

Cat. No. 13606U

Form 6478 (2008)

Page 2 of 3

Instructions for Form 6478

16:09 - 3-OCT-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Page 3

Coordination With Excise Tax Credit

Line 8

Only one credit may be taken with respect to any gallon of
alcohol or cellulosic biofuel in a mixture reported on Form 6478.
If any amount is claimed (or will be claimed) with respect to any
gallon of alcohol or cellulosic biofuel on Form 720, Quarterly
Federal Excise Tax Return; Form 8849, Claim for Refund of
Excise Taxes; or Form 4136, Credit for Federal Tax Paid on
Fuels; then a claim cannot be made on Form 6478 for that
gallon of alcohol or cellulosic biofuel.

Enter the number of gallons of alcohol (other than cellulosic
biofuel) 190 proof or greater in a qualified mixture (a mixture of
alcohol and gasoline or alcohol and a special fuel) sold or used
after 2008. For alcohol other than ethanol, the rate is 60 cents
per gallon.

Line 9
Enter the number of gallons of alcohol (other than cellulosic
biofuel) less than 190 proof but at least 150 proof in a qualified
mixture (a mixture of alcohol and gasoline or alcohol and a
special fuel) sold or used before 2009. For alcohol other than
ethanol, the rate is 45 cents per gallon.

Recapture of Credit
You must pay a tax on each gallon of alcohol or cellulosic
biofuel (or the alcohol or cellulosic biofuel in the mixture) at the
rate you used to figure the credit if you:
• Separate the alcohol or cellulosic biofuel from the mixture,
• Use the mixture other than as a fuel,
• Mix alcohol or cellulosic biofuel on which the credit was
allowed for the retail sale,
• Use the alcohol or cellulosic biofuel other than as a fuel, or
• Do not use the fuel for the purposes described under
Qualified Ethanol Fuel Production.
Report the tax on Form 720.

Line 10
Enter the number of gallons of alcohol (other than cellulosic
biofuel) less than 190 proof but at least 150 proof in a qualified
mixture (a mixture of alcohol and gasoline or alcohol and a
special fuel) sold or used after 2008. For alcohol other than
ethanol, the rate is 45 cents per gallon.

Line 11
Enter the number of gallons of cellulosic biofuel in a qualified
mixture (a mixture of cellulosic biofuel and gasoline or of
cellulosic biofuel and a special fuel) produced and sold or used
after 2008.

Specific Instructions
Note. We have shown in column (b) the rate for ethanol only.
If you have a credit for alcohol other than ethanol, enter in
column (b) the applicable rate shown in the instructions for lines
2 through 5, and 7 through 10.
Use lines 1 through 11 to figure any alcohol and cellulosic
biofuel fuels credit from your own trade or business.

Line 12
The total credit shown in column (c) on lines 1 through 11, must
be included in income under “other income” on the applicable
line of your income tax return, even if you cannot use all of the
credit because of the tax liability limit. However, if you are
subject to the alternative minimum tax (AMT), this amount is not
income in computing AMT and must be subtracted when
figuring your alternative minimum taxable income. Do this by
including this amount on line 26 of Form 6251, line 23 of
Schedule I (Form 1041), or line 2o of Form 4626.

Line 1
Enter the number of gallons of ethanol, up to 15 million gallons,
that meet the conditions listed under Qualified Ethanol Fuel
Production on page 2. Multiply by the rate of 10 cents per
gallon.
Important: The amount of the credit determined for lines 2
through 11 below with respect to alcohol in qualified mixtures
must be reduced by the excise tax benefit for qualified methanol
or ethanol fuel reflected on Form 720. See sections 40(c) and
4041(b)(2).

Line 13
Enter the amount of credit that was allocated to you as a
partner, shareholder, patron, or beneficiary.
If your credit from a pass-through entity includes the small
ethanol producer credit, you, as a partner, shareholder, patron,
or beneficiary, are subject to the 15-million-gallon limitation for
line 1 and the 60-million-gallon productive capacity limitation for
an eligible small ethanol producer. If you receive a small
ethanol producer credit from more than one entity, your credit
may be limited.

Line 2
Enter the number of gallons of alcohol (other than cellulosic
biofuel) that is 190 proof or greater sold or used before 2009.
For alcohol other than ethanol, the rate is 60 cents per gallon.

Line 3
Enter the number of gallons of alcohol (other than cellulosic
biofuel) 190 proof or greater sold or used after 2008. For
alcohol other than ethanol, the rate is 60 cents per gallon.

Line 14
If the credit includes the small ethanol producer credit, the
partnership (other than an electing large partnership) or S
corporation must provide the following additional information:
• The amount of the small ethanol producer credit included as
part of the pass-through credit;
• The number of gallons claimed at the entity level for the small
ethanol producer credit; and
• The productive capacity of the entity.

Line 4
Enter the number of gallons of alcohol (other than cellulosic
biofuel) less than 190 proof but at least 150 proof sold or used
before 2009. For alcohol other than ethanol, the rate is 45 cents
per gallon.

Line 5
Enter the number of gallons of alcohol (other than cellulosic
biofuel) less than 190 proof but at least 150 proof sold or used
after 2008. For alcohol other than ethanol, the rate is 45 cents
per gallon.

Line 15

Line 7

Enter the amount included on line 6 that is from a passive
activity. Generally, a passive activity is a trade or business in
which you did not materially participate. Rental activities are
generally considered passive activities, whether or not you
materially participate. For details, see Form 8582-CR, Passive
Activity Credit Limitations (for individuals, trusts, and estates),
or Form 8810, Corporate Passive Activity Loss and Credit
Limitations (for corporations).

Enter the number of gallons of alcohol (other than cellulosic
biofuel) 190 proof or greater in a qualified mixture (a mixture of
alcohol and gasoline or alcohol and a special fuel) sold or used
before 2009. For alcohol other than ethanol, the rate is 60 cents
per gallon.

Enter the passive activity credit allowed for the 2008 alcohol
and cellulosic biofuel fuels credit from Form 8582-CR or Form
8810.

Line 6
Enter the number of gallons of cellulosic biofuel produced and
sold or used after 2008.

Line 17

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Page 3 of 3

Instructions for Form 6478

16:09 - 3-OCT-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• The number of gallons claimed by the cooperative.
• The productive capacity of the cooperative.

Line 18
Carryforward. Use line 18 to show any carryforward of the
credit from 2007. For carryforwards of the credit from years
prior to 2005, show such carryforwards on line 6 of Form 3800.
Carryback. Use line 18 to show any carryback if you amend
your 2008 return to carry back an unused credit from 2009.

If you timely filed your return without making an election, you
can still make the election by filing an amended return within 6
months of the due date of the return (excluding extensions).
Write “Filed pursuant to section 301.9100-2” on the amended
return.
Once made, the election cannot be revoked.

Line 20
Estate or trust. Allocate the alcohol and cellulosic biofuel
fuels credit on line 19 between the estate or trust and the
beneficiaries in the same proportion as income was allocated
and enter the beneficiaries’ share on line 20.
If the credit includes the small ethanol producer credit, the
estate or trust must provide the following additional information:
• The amount of the small ethanol producer credit included as
part of the pass-through credit;
• The number of gallons claimed by the estate or trust for the
small ethanol producer credit; and
• The productive capacity of the estate or trust.
Cooperative election to allocate the small ethanol or the
cellulosic biofuel producer credit to patrons. A cooperative
described in section 1381(a) can elect to allocate any part of
the small ethanol or the cellulosic biofuel producer credit to
patrons of the cooperative. To make the election, attach a
statement to the effect that the cooperative elects to allocate
the credit pro rata among the patrons eligible to share in
patronage dividends on the basis of the quantity or value of
business done with or for the patrons for the tax year.
The election is not effective unless:
• The statement described above is attached to the timely filed
tax return (including extensions) for the tax year associated with
the election. However, if you already made the election on a tax
return filed before June 15, 2006, but failed to attach the
required statement to that tax return, attach the statement to
your next filed return.
• A cooperative designates the apportionment in a written
notice mailed to its patrons during the payment period
described in section 1382(d).
A cooperative electing to allocate any part of the small
ethanol producer credit must also provide to its patrons the
following additional information:

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 . . . . . . . . . . . . . . . . . . . . . X hr., XXmin.
Learning about the law or the form . . . . . . . XX min.
Preparing and sending the form to the IRS . . XX min.

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.

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