Form 6478 Credit for Alcohol Used as Fuel

Form

6478

Department of the Treasury
Internal Revenue Service

Biofuel Producer Credit
to your tax return.
▶ Information about Form 6478 and its instructions is at www.irs.gov/form6478.

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Attachment
Sequence No. 83

Identifying number
(a)
Number of Gallons
Sold or Used

Type of Fuel

b

2013

▶ Attach

Name(s) shown on return

1a

OMB No. 1545-0231

Qualified cellulosic biofuel production for fuel sold or used
before January 3, 2013 (see instructions for election) . . .
Qualified second generation biofuel production for fuel sold or
used after January 2, 2013 (see instructions for election) . .

1a

$1.01

1b

$1.01

Add the amounts in column (c) on lines 1a and 1b. Include this amount in your income for 2013,
and enter your IRS registration number (see instructions)
. . .
Biofuel producer credit from partnerships, S corporations, cooperatives, estates, and trusts (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 2 and 3. Cooperatives, estates, and trusts, go to line 5. Partnerships and S corporations,
stop here and report this amount on Schedule K. All others, stop here and report this amount on
Form 3800, line 4c
. . . . . . . . . . . . . . . . . . . . . . . . . .
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cooperatives, estates, and trusts, subtract line 5 from line 4. Report this amount on Form 3800,
line 4c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Future Developments
For the latest information about developments related to
Form 6478 and its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form6478.

What's New
• The cellulosic biofuel producer credit expired for fuel
sold or used after January 2, 2013.
• The second generation biofuel producer credit is
scheduled to expire for fuel sold or used after 2013.

Purpose of Form
Use Form 6478 to figure your biofuel producer credit. You
claim the credit for the tax year in which the sale or use
occurs. This credit consists of the:
• Cellulosic biofuel producer credit, and
• Second generation biofuel producer credit.
You may claim or elect not to claim the biofuel
producer 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.
Taxpayers, other than partnerships, S corporations,
cooperatives, estates, or trusts, 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 Form 3800.

Qualified Cellulosic Biofuel Production

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

(b)
Rate

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3

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5
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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
2. Is used or sold by the producer for any purpose
described in (1) above.
Qualified cellulosic biofuel 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.

Cellulosic Biofuel
Generally, cellulosic biofuel, for credit purposes, is any
liquid fuel, which:
• Is produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis,
• 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

This is cellulosic biofuel which during the tax year:
For Paperwork Reduction Act Notice, see instructions.

Cat. No. 13605J

Form 6478 (2013)

Page 2

Form 6478 (2013)

• 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).
However, cellulosic biofuel does not include any fuel if:
• More than 4% of the fuel (determined by weight) is any
combination of water and sediment,
• The ash content of the fuel is more than 1%
(determined by weight), or
• The fuel has an acid number greater than 25.

Qualified Second Generation Biofuel
Production
This is second generation biofuel which 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 second generation 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 second generation biofuel at retail to
another person and puts the second generation biofuel in
the retail buyer’s fuel tank; or
2. Is used or sold by the producer for any purpose
described in (1) above.
Qualified second generation biofuel production does
not include purchasing alcohol and increasing the proof
of the alcohol through additional distillation. Nor does it
include second generation 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 second generation biofuel mixture combines
second generation 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.

Second Generation Biofuel
Generally, second generation biofuel, for credit purposes,
is any liquid fuel, which:
• Is derived by, or from, qualified feedstocks;
• 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).
A qualified feedstock is:
• Any lignocellulosic or hemicellulosic matter that is
available on a renewable or recurring basis, and
• Any cultivated algae, cyanobacteria, or lemna.
However, second generation biofuel does not include
any fuel if:

• More than 4% of the fuel (determined by weight) is any
combination of water and sediment,
• The ash content of the fuel is more than 1%
(determined by weight), or
• The fuel has an acid number greater than 25.
Special rules for algae. For sales described in (1) under
Qualified Second Generation Biofuel Production, earlier,
second generation biofuel also includes certain liquid fuel,
which:
• Is derived by, or from, any cultivated algae,
cyanobacteria, or lemna, and
• Is not alcohol of less than 150 proof (disregard any
added denaturants).
But only if this fuel is sold by the producer to another
person for refining by such other person into a liquid fuel
which will meet 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 not include any fuel if:
• More than 4% of the fuel (determined by weight) is any
combination of water and sediment,
• The ash content of the fuel is more than 1%
(determined by weight), or
• The fuel has an acid number greater than 25.
Also, once this fuel is sold by the producer to another
person for refining by such person into a fuel which will
meet these requirements, neither the producer nor any
other person can use such fuel (or any fuel derived from
such fuel) to figure a second credit for qualified second
generation biofuel production.

Registration
All producers of cellulosic or second generation biofuel
must be registered with the IRS. See Form 637,
Application for Registration.

Recapture of Credit
You must pay a tax on each gallon of cellulosic or second
generation biofuel at the rate you used to figure the credit
if you do not use the fuel for the purposes described
under Qualified Cellulosic Biofuel Production or Qualified
Second Generation Biofuel Production, earlier.
Report the tax on Form 720, Quarterly Federal Excise
Tax Return.

Specific Instructions
Line 1a
Enter the number of gallons of cellulosic biofuel sold or
used before January 3, 2013, that meets the conditions
listed under Qualified Cellulosic Biofuel Production,
earlier. Multiply by the rate of $1.01 per gallon.

Line 1b
Enter the number of gallons of second generation biofuel
sold or used after January 2, 2013, that meets the
conditions listed under Qualified Second Generation
Biofuel Production, earlier. Multiply by the rate of $1.01
per gallon.

Form 6478 (2013)

Line 2
The total credit shown in column (c) on lines 1a and 1b
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 27 of Form 6251, line 23 of Schedule I
(Form 1041), or line 2o of Form 4626.
Registration number. To claim a cellulosic or second
generation biofuel producer credit on line 1a or line 1b,
you must be registered with the IRS. Enter your CB
registration number in the space provided. For more
information, see Form 637 and Publication 510, Excise
Taxes.

Line 3
Enter the amount of credit that was allocated to you as a
partner, shareholder, patron of a cooperative, or
beneficiary.

Line 5
Estate or trust. Allocate the biofuel producer credit on
line 4 between the estate or trust and the beneficiaries in
the same proportion as income was allocated and enter
the beneficiaries’ share on line 5.
If the estate or trust is subject to the passive activity
rules, include on line 3 any Form 6478 credits from
passive activities disallowed for prior years and carried
forward to this year. Complete Form 8582-CR, Passive
Activity Credit Limitations, to determine the allowed credit
that must be allocated between the estate or trust and
the beneficiaries. For details, see the Instructions for
Form 8582-CR.
Cooperative election to allocate the cellulosic or
second generation biofuel producer credit to patrons.
A cooperative described in section 1381(a) can elect to
allocate any part of the cellulosic or second generation
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.
If the cooperative is subject to the passive activity
rules, include on line 3 any Form 6478 credits from
passive activities disallowed for prior years and carried

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forward to this year. Complete Form 8810, Corporate
Passive Activity Loss and Credit Limitations, to determine
the allowed producer credits that can be allocated to
patrons. For details, see the Instructions for Form 8810.
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, and
• The cooperative designates the apportionment in a
written notice mailed to its patrons during the payment
period described in section 1382(d).
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 . . . . . . . . . . 4 hr., 32 min.
Learning about the law or the form . . . . 53 min.
Preparing and sending
the form to the IRS . . . . . . . . . . . 1 hr.
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.