Form 8907 Nonconventional Source Fuel Credit

Form

8907

OMB No. 1545-2008

Nonconventional Source Fuel Credit
▶

Department of the Treasury
Internal Revenue Service

2010

Attach to your tax return.
▶ See instructions.

Attachment
Sequence No. 146
Identifying number

Name(s) shown on return

(a)
Qualified coke and coke
gas sold after 12/31/2009 and
before 1/1/2011

1

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

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5

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

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(b)
Qualified coke and
coke gas
sold after 12/31/2010

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5

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 . . . . . . . . . . . . . . . . .
6b
c Divide line 6a by line 6b. Show as a decimal to at least 4 places . . .
6c
d Multiply line 5 by line 6c . . . . . . . . . . . . . . . . . . .

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6d

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7

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,
and under section 38 for any prior tax year . . . . . . . . . .
8b
c Subtract line 8b from line 8a. If zero or less, enter -0- . . . . . . . . .

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8c

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9

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6a

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 . . . .

9

Subtract line 8c from line 7 .

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8a

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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
enhanced oil recovery credit with respect to such project . . . . .
b Enter the total amount of enhanced oil recovery credit recapture with
respect to the amount on line 10a for any prior tax year
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10a
10b

Subtract line 10b from line 10a. If zero or less, enter -0-

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10c

11

Subtract line 10c from line 9

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11

12

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

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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 1o . . . . . . . .

13

14

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

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14

15

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

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For Paperwork Reduction Act Notice, see instructions.

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Cat. No. 37716X

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Form 8907 (2010)

Form 8907 (2010)

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

Page

!
▲
CAUTION

2

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 account
days before the date the facility was placed in service.

Purpose of Form

Line 3

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 1o of
Form 3800.

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.

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;
• 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; and
• The fuel was not manufactured using as feedstock steel
industry fuel for which a credit is allowed on Form 8835,
Renewable Electricity, Refined Coal, and Indian Coal Production
Credit.
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 fuels was
CAUTION 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.

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
. . . . . . . . . . . 6 hr., 27 min.
Learning about the law or the form . . . . . . . 35 min.
Preparing and sending the form to the IRS . . . . 43 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.