Form Schedule-3 (Form 8 Schedule-3 (Form 8 Certain Fuel Mixtures and the Alternative Fuel Credit

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Certain Fuel Mixtures
and the Alternative Fuel Credit

Schedule 3
(Form 8849)
(Rev. March 2018)
Department of the Treasury
Internal Revenue Service
Name as shown on Form 8849

OMB No. 1545-1420

Attach to Form 8849. Don’t file with any other schedule.
▶ Go to www.IRS.gov/Form8849 for instructions and the latest information.
▶

EIN or SSN

Total refund (see instructions)

$

DRAFT AS OF
March 22, 2018
DO NOT FILE

Caution: For 2017: See the instructions and Notice 2018-21 for information on how to make 2017 claims. Don’t combine claims for 2017 and
2018 on the same Schedule 3 (Form 8849). For 2018 (if the credits are extended): The biodiesel mixture credit and renewable diesel mixture
credit must first be taken as a credit against your taxable fuel liability (gasoline, diesel fuel, and kerosene) reported on Form 720. Similarly, the
alternative fuel credit must first be taken on Form 720 as a credit against your alternative fuel or compressed natural gas (CNG) tax liability. If
you have these tax liabilities and you didn’t make the claim on Form 720, Schedule C, as a credit against those liabilities, you must first file
Form 720X, Amended Quarterly Federal Excise Tax Return, before Schedule 3 (Form 8849) can be used for the refund. You can’t claim any
amounts on Form 8849 that you claimed (or will claim) on Form 720, Schedule C; Form 720X; or Form 4136, Credit for Federal Tax Paid on
Fuels.

Claimant’s registration no. ▶

Enter your registration number, including the prefix. Line 3 claimants must enter their AL or AM registration number.

Period of claim: Enter month, day, and year in
MMDDYYYY format.
1

Reserved for future use

To ▶

From ▶

Reserved for future use

(a)
Rate

(b)
Gallons of alcohol

(c) Amount of claim
Multiply col. (a) by col. (b).

(d)
CRN

a Reserved for future use
b Reserved for future use
2
Biodiesel or Renewable Diesel Mixture Credit
Biodiesel mixtures. Claimant produced a mixture by mixing biodiesel with diesel fuel. The biodiesel used to produce the mixture met ASTM
D6751 and met the EPA’s registration requirements for fuels and fuel additives. The mixture was sold by the claimant to any person for use as
a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable, the Statement of Biodiesel
Reseller. Renewable diesel mixtures. Claimant produced a mixture by mixing renewable diesel with liquid fuel (other than renewable diesel).
The renewable diesel used to produce the renewable diesel mixture was derived from biomass, met the EPA’s registration requirements for
fuels and fuel additives, and met ASTM D975, D396, or other equivalent standard approved by the IRS. The mixture was sold by the claimant
to any person for use as a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable,
Statement of Biodiesel Reseller, both of which have been edited as discussed in the instructions for line 2. See the instructions for line 2 for
information about renewable diesel used in aviation.
(a)
Rate

a Biodiesel (other than agri-biodiesel) mixtures
b Agri-biodiesel mixtures
c Renewable diesel mixtures
3
Alternative Fuel Credit

$1.00
1.00
1.00
(a)
Rate

a
b
c
d
e
f
g
h
i

Liquefied petroleum gas (LPG)
“P” Series fuels
Compressed natural gas (CNG)
Liquefied hydrogen
Fischer-Tropsch process liquid fuel from coal (including peat)
Liquid fuel derived from biomass
Liquefied natural gas (LNG)
Liquefied gas derived from biomass
Compressed gas derived from biomass

$.50
.50
.50
.50
.50
.50
.50
.50
.50

(b)
Gallons of
(c) Amount of claim
biodiesel or
Multiply col. (a) by col. (b)
renewable diesel

$

(b)
(c) Amount of claim
Gallons, or
Multiply col. (a) by col. (b)
gasoline or diesel
gallon equivalent

$

(d)
CRN

388
390
307

(d)
CRN

426
427
428
429
430
431
432
436
437

Send this schedule with completed Form 8849 to: Internal Revenue Service, P.O. Box 312, Covington, KY 41012-0312; on the envelope write “Fuel Mixture Claim.”
For Privacy Act and Paperwork Reduction Act Notice, see Form 8849 instructions.
Cat. No. 27451F
Schedule 3 (Form 8849) (Rev. 3-2018)

Page 2

Schedule 3 (Form 8849) (Rev. 3-2018)

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

Coordination With Excise Tax Credit

For the latest information about developments related to Schedule 3
(Form 8849) and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/Form8849.

Only one credit may be taken for any one gallon of alternative fuel. If any
amount is claimed (or will be claimed) for any gallon of biodiesel mixture,
renewable diesel mixture, or alternative fuel on Form 720, Form 720X,
Form 8864, or Form 4136, then a claim can’t be made on Form 8849,
Claim for Refund of Excise Taxes, for that gallon of biodiesel mixture,
renewable diesel mixture, or alternative fuel.

What’s New

Excise Tax Liability

Future Developments

DRAFT AS OF
March 22, 2018
DO NOT FILE

One-time claims for calendar year 2017. The credits for biodiesel
mixtures, renewable diesel mixtures, and alternative fuels, which expired
at the end of 2016, were retroactively reinstated for calendar year 2017.
You can make a one-time claim for credits for sales or uses of these
fuels in calendar year 2017. For information on how to make a one-time
claim, see Notice 2018-21 and One-Time Claims for Calendar Year
2017, below.
Alternative fuel mixture credits for 2017. The credit for alternative fuel
mixtures also expired at the end of 2016, and is retroactively reinstated
for calendar year 2017. If you want to make a claim for the alternative
fuel mixture credit for 2017, you must file Form 720X, Amended
Quarterly Federal Excise Tax Return. For information on how to make a
claim, see Notice 2018-21.

Reminders

Reducing your excise tax liability. For federal income tax purposes,
reduce your section 4081 excise tax liability by the amount of excise tax
credit allowable under section 6426(c) and your section 4041 excise tax
liability by the amount of your excise tax credit allowable under section
6426(d), in determining your deduction for those excise taxes or your
cost of goods sold deduction attributable to those excise taxes.
Schedule 3 (Form 8849) can be filed electronically. For more
information on filing electronically, visit the IRS e-file website at
www.IRS.gov/eFile.

Purpose of Form
Use Schedule 3 (Form 8849) to make claims for sales or uses of
biodiesel mixtures, renewable diesel mixtures, and alternative fuels.

General Instructions
One-Time Claims for Calendar Year 2017
You can make a one-time credit claim for your calendar year 2017 sales
or uses of biodiesel mixtures, renewable diesel mixtures, and alternative
fuels. To submit the one-time claim for excise tax credits, you must file
Schedule 3 (Form 8849). The one-time claim rule doesn’t apply to
income tax credits for biodiesel mixtures, renewable diesel mixtures,
and alternative fuels. You should continue to make those claims on
Forms 4136 and 8864.
If you filed “protective” or anticipatory claims for these credits, you
must refile your claims in accordance with Notice 2018-21. The IRS
won’t treat as perfected any such protective or anticipatory claims
previously filed with IRS that aren’t timely supplemented in accordance
with Notice 2018-21.
You must follow the procedures below to make a one-time calendar
year 2017 claim on Schedule 3 (Form 8849).
• Enter amounts for 2017 biodiesel mixtures or renewable diesel
mixtures on line 2, and alternative fuels on line 3, as appropriate.
• Submit a single form for all 2017 biodiesel mixtures, renewable diesel
mixtures, and alternative fuels credit claims; the IRS won’t process
multiple submissions from a claimant.
• You must file your 2017 claims for biodiesel mixture, renewable diesel
mixture, and alternative fuel by September 29, 2018. The IRS won’t
process claims for calendar year 2017 received after that date.
• Don’t combine claims for 2017 and 2018 (if the credits are
extended for 2018) on the same Schedule 3 (Form 8849).

Persons who blend an untaxed liquid with taxable fuel to produce a
taxable fuel mixture outside the bulk transfer terminal system must pay
the excise tax on the volume of the untaxed liquid in the mixture.
Use Form 720 to report these taxes. You also must be registered with
the IRS as a blender (M registrants). Line 3 claimants must also have an
AL registration number. See Form 637, Application for Registration (For
Certain Excise Tax Activities).

How To File

Attach Schedule 3 (Form 8849) to Form 8849. If you aren’t filing
electronically, on the envelope write “Fuel Mixture Claim” and send it to
the IRS at the address at the bottom of page 1.

Specific Instructions
Line 1

These lines are reserved.

Line 2. Biodiesel or Renewable Diesel Mixture Credit
Claimant. The person that produced and sold or used the mixture in
their trade or business is the only person eligible to make this claim. The
credit is based on the gallons of biodiesel or renewable diesel in the
mixture.
The biodiesel used to produce the biodiesel mixture must meet ASTM
D6751 and meet the Environmental Protection Agency's (EPA)
registration requirements for fuels and fuel additives under section 211
of the Clean Air Act. The renewable diesel used to produce the
renewable diesel mixture must be derived from biomass, meet the
EPA's registration requirements for fuels and fuel additives under
section 211 of the Clean Air Act, and meet ASTM D975, D396, or other
equivalent standard approved by the IRS. Renewable diesel also
includes fuel derived from biomass that meets a Department of Defense
specification for military jet fuel or an ASTM specification for aviation
turbine fuel. For a renewable diesel mixture used in aviation, kerosene is
treated as if it is diesel fuel.
Renewable diesel doesn’t include any fuel derived from
coprocessing biomass (as defined in section 45K(c)(3)) with a
feedstock that isn’t biomass.

!
▲
CAUTION

Claim requirements. 1. The biodiesel mixture credit may not be
claimed for biodiesel produced outside the United States for use as a
fuel outside the United States. The United States includes any
possession of the United States. The claimant has a certificate from the
producer. See Certificate below for details.
2. The claim must be for a biodiesel or renewable diesel mixture sold or
used during a period that’s at least 1 week.
3. The claimant has a certificate from the producer. See Certificate
below for details.
4. The amount of the claim must be at least $200 unless the claim is
filed electronically. To meet the minimum, amounts from lines 2 and 3
may be combined.
5. The claim must be filed by the last day of the first quarter following
the earliest quarter of the claimant’s income tax year included in the
claim. For example, a calendar-year claimant’s claim for a biodiesel
mixture sold or used during June and July must be filed by September
30.
Note. If requirements 2–5 above aren’t met, see Annual Claims under
Additional Information for Schedules 1, 2, and 3 in the Form 8849
instructions.

Page 3

Schedule 3 (Form 8849) (Rev. 3-2018)

Certificate. The Certificate for Biodiesel and, if applicable, Statement
of Biodiesel Reseller must be attached to the first claim filed that is
supported by the certificate or statement. For the renewable diesel
mixture credit, you must edit the certificate and, if applicable, statement,
to indicate that the fuel to which the certificate and statement relate is
renewable diesel and state the renewable diesel meets the requirements
discussed earlier under Claimant. See Model Certificate O and Model
Certificate S in Pub. 510.

Note. If requirements 2–5 above aren’t met, see Annual Claims under
Additional Information for Schedules 1, 2, and 3 in the Instructions for
Form 8849 instructions.
Carbon capture requirement. A credit for Fischer-Tropsch process
liquid fuel from coal (including peat) can be claimed only if the fuel is
derived from coal produced at a gasification facility which separates and
sequesters at least 75% of the facility’s total carbon dioxide emissions.

DRAFT AS OF
March 22, 2018
DO NOT FILE

Line 3. Alternative Fuel Credit

Claimant. For the alternative fuel credit, the registered alternative fueler
who (1) sold an alternative fuel at retail and delivered it into the fuel
supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel,
delivered it in bulk for taxable use in a motor vehicle or motorboat, and
received the required statement from the buyer, (3) used an alternative
fuel (not sold at retail or in bulk as previously described) in a motor
vehicle or motorboat, or (4) sold an alternative fuel for use as a fuel in
aviation is the only person eligible to make this claim.
Claim requirements. 1. The alternative fuel credit may not be claimed
for alternative fuel produced outside the United States for use as a fuel
outside the United States. The United States includes any possession of
the United States.
2. You must be registered with the IRS.
3. The claim must be for an alternative fuel sold or used (as described
above under Claimant) during a period that’s at least 1 week.
4. The amount of the claim must be at least $200 unless the claim is
filed electronically. To meet the minimum, amounts from lines 2 and 3
may be combined.
5. The claim must be filed by the last day of the first quarter following
the earliest quarter of the claimant’s income tax year included in the
claim. For example, a calendar-year claimant’s claim for a biodiesel
mixture sold or used during June and July must be filed by September
30.

Claim rates.
• CNG has a claim rate (or GGE (gasoline gallon equivalent)) of 121
cubic feet.
• Compressed gas derived from biomass has a claim rate (or GGE) of
121 cubic feet.
For sales or uses of fuel after December 31, 2015:
• LPG has a claim rate (or GGE) of 5.75 pounds or 1.353 gallons of LPG.
• LNG has a claim rate (or DGE (diesel gallon equivalent)) of 6.06
pounds or 1.71 gallons of LNG.
Example. 10,000 gallons of LPG ÷ 1.353 = 7,391 GGE x $0.50 =
$3,695.50 claim amount.

Amount of Claim

Multiply the number of gallons or gasoline (or diesel) gallon equivalents
by the rate and enter the result in the boxes for lines 2 and 3, column (c).

Total Refund

Add all amounts in column (c) and enter the result in the total refund box
at the top of the first page of the schedule. See Claim requirements,
above for each type of claim.