Form 6478 Alcohol and Cellulosic Biofuel Fuels Credit.

Version A, Cycle 5

Form

6478

Alcohol and Cellulosic Biofuel Fuels Credit

Department of the Treasury
Internal Revenue Service

© Attach

OMB No. 1545-0231

2009

Attachment
Sequence No. 83

to your tax return.
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
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

(a)
Number of Gallons
Sold or Used

(b)
Rate

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

Qualified ethanol fuel production (see instructions for
1
election) . . . . . . . . . . . . . . . . . .
$.10
Alcohol 190 proof or greater and alcohol 190 proof or greater
2
in fuel mixtures . . . . . . . . . . . . . . . .
$.45*
Alcohol less than 190 proof but at least 150 proof and alcohol
3
less than 190 proof but at least 150 proof in fuel mixtures . .
$.3333*
Qualified cellulosic biofuel produced after 2008 that is alcohol
4
(see instructions for election) . . . . . . . . . . .
$.41**
Qualified cellulosic biofuel produced after 2008 that is not
alcohol (see instructions for election) . . . . . . . . .
5
$1.01
Add the amounts in column (c) on lines 1 through 5. Include this amount in your income for 2009
6
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alcohol and cellulosic biofuel fuels credit from a partnership, S corporation, cooperative, estate,
7
or trust (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 6 and 7. Partnerships and S corporations, report this amount on Schedule K. All others,
8
go to line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alcohol and cellulosic biofuel fuels credit included on line 8 from passive activities
9
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . .
Alcohol and cellulosic biofuel fuels credit allowed for 2009 from a passive activity (see instructions) 11
Carryforward of any alcohol and cellulosic biofuel fuels credit that originated in a tax year that
12
began after 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Carryback of the alcohol and cellulosic biofuel fuels credit from 2010 (see instructions) . . . .
Add lines 10 through 13. Cooperatives, estates, and trusts, go to line 15. All others, report this
14
amount on Form 3800, line 29c
. . . . . . . . . . . . . . . . . . . . . .
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see
15
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cooperatives, estates, and trusts. Subtract line 15 from line 14. Report this amount on Form 3800,
line 29c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16

DRAFT AS OF
September 29, 2009

*Only the rate for ethanol is shown. See instructions for the rate for alcohol other than ethanol.
**Only the rate for alcohol other than ethanol is shown. See instructions for the rate for ethanol.

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

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.
●

For Paperwork Reduction Act Notice, see instructions.

Before claiming a credit on Form 6478, the alcohol
fuel mixture credit must be taken against any
section 4081 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);
2. Is sold by the producer to another person—
a. For use by the buyer in the buyer’s trade or
business to produce a qualified mixture (other than casual
off-farm production),
Cat. No. 13605J

Form 6478 (2009)

Version A, Cycle 5
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Form 6478 (2009)

b. For use by the buyer as a fuel in a trade or
business, or
c. 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.

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 2% (see Notice 2009-6 in
I.R.B. 2009-3 for details) of the volume of the alcohol and
denaturant combined.
● Alcohol produced outside the United States or a U.S.
possession for use as a fuel outside the United States or a
U.S. possession.
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:
●

Cellulosic Biofuel
Cellulosic biofuel, for credit purposes, is 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 added denaturants (additives that
make the alcohol unfit for human consumption).

Registration

DRAFT AS OF
September 29, 2009

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.
●

2. Is used or sold by the producer for any purpose
described in 1 above.
Qualified cellulosic fuel production does not include
purchasing alcohol and increasing the proof of the alcohol
through additional distillation. Nor does it include cellulosic
biofuel that is not both produced in the United States or a
U.S. possession and used as a fuel in the United States or a
U.S. possession.
A qualified cellulosic biofuel mixture combines cellulosic
biofuel with gasoline or a special fuel. The producer of the
mixture either:
● Used it as a fuel, or
● Sold it as fuel to another person.

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.

Alcohol Fuel Mixture
The alcohol must be used to make a qualified mixture. A
qualified alcohol mixture combines alcohol 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.

Qualified Cellulosic Biofuel Production
This is cellulosic biofuel produced after 2008, and during the
tax year:
1. Is sold by the producer to another person—
a. 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),
b. For use by the buyer as a fuel in a trade or
business, or
c. Who sells the cellulosic biofuel at retail to another
person and puts the cellulosic biofuel in the retail buyer’s
fuel tank; or

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

Coordination With Excise Tax Credit

Only one credit may be taken with respect to any gallon of
alcohol in a mixture reported on Form 6478. If any amount is
claimed (or will be claimed) with respect to any gallon of
alcohol 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.

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 from the mixture,
● Use the alcohol mixture other than as a fuel,
● Mix alcohol on which the credit was allowed for the retail
sale,
● Use the alcohol other than as a fuel, or
● Do not use the fuel for the purposes described under
Qualified Ethanol Fuel Production or Qualified Cellulosic
Biofuel Production.
Report the tax on Form 720.

Specific Instructions
Use lines 1 through 5 to figure any alcohol and cellulosic
biofuel fuels credit from your own trade or business.

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Form 6478 (2009)

Note. We have shown in column (b) of lines 2 and 3 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 and 3.

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 1. Multiply by the rate of 10
cents per gallon.
Important: The amount of the credit determined for lines 2
and 3 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 2
Enter the number of gallons of alcohol 190 proof or greater
and alcohol 190 proof or greater in qualified mixtures
(mixtures of alcohol and gasoline or alcohol and special
fuels). For alcohol other than ethanol, the rate is 60 cents per
gallon.

Line 3
Enter the number of gallons of alcohol less than 190 proof
but at least 150 proof and alcohol less than 190 proof but at
least 150 proof in qualified mixtures (mixtures of alcohol and
gasoline or alcohol and special fuels). For alcohol other than
ethanol, the rate is 45 cents per gallon.

Line 4

Enter the number of gallons of cellulosic biofuel produced
after 2008 that is not alcohol and meets the conditions listed
under Qualified Cellulosic Biofuel Production on page 2.
Multiply by the rate of $1.01 per gallon.

Line 6

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 9
Enter the amount included on line 8 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).

Line 11
Enter the passive activity credit allowed for the 2009 alcohol
and cellulosic biofuel fuels credit from Form 8582-CR or
Form 8810.

Line 12
Use line 12 to show any carryforward of the credit that
originated in a tax year that began after 2004. For
carryforwards of the credit from years prior to 2005, show
such carryforwards on line 6 of Form 3800.

DRAFT AS OF
September 29, 2009

Enter the number of gallons of cellulosic biofuel produced
after 2008 that is alcohol and meets the conditions listed
under Qualified Cellulosic Biofuel Production on page 2. For
ethanol, the rate is 46 cents per gallon.

Line 5

Line 8

The total credit shown in column (c) on lines 1 through 5,
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 figuring AMT and must
be subtracted when figuring your alternative minimum
taxable income. Do this by including this amount on line 28
of Form 6251, line 23 of Schedule I (Form 1041), or line 2o of
Form 4626.

Line 7
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 13

Use line 13 to show any carryback if you amend your 2009
return to carry back an unused credit from 2010.

Line 15

Estate or trust. Allocate the alcohol and cellulosic biofuel
fuels credit on line 14 between the estate or trust and the
beneficiaries in the same proportion as income was
allocated and enter the beneficiaries’ share on line 15.
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
producer credit 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 producer credit
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.

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Form 6478 (2009)

● The 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:
● The number of gallons claimed by the cooperative.
● The productive capacity of the cooperative.
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.
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 . . . . . . . . . . 8 hrs., 7 mins.
Learning about the law or the form . . . . . 35 mins.
Preparing and sending
the form to the IRS . . . . . . . . . . . 45 mins.
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.

DRAFT AS OF
September 29, 2009