6478 Instructions for Form 6478

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2018

Instructions for Form 6478

Department of the Treasury
Internal Revenue Service

Biofuel Producer Credit

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 IRS.gov/
Form6478.

What’s New

At the time these instructions went to print, the
biofuel producer credit formerly claimed on lines 1
CAUTION and 2 had expired. You can't claim the credit on
line 1 and 2 for fuel sold or used after 2017. Lines 1 and 2
are now shown as "Reserved for future use" in case
Congress extends the credit for 2018. To find out if
legislation extended the credit so you can claim it on your
2018 return, go to IRS.gov/Extenders.

!

• Schedule K-1 (Form 1041), Beneficiary’s Share of
Income, Deductions, Credits, etc., box 13 (code H); and
• Form 1099-PATR, Taxable Distributions Received
From Cooperatives, box 10, or other notice of credit
allocation.

DRAFT AS OF
October 2, 2018

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

General Instructions
Purpose of Form

Partnerships, S corporations, cooperatives, estates, and
trusts must file this form to claim the credit. All other
taxpayers aren’t required to complete or file this form if
their only source for this credit is a partnership, S
corporation, cooperative, estate, or trust. Instead, they
can report this credit directly on line 4c in Part III of Form
3800, General Business Credit.

Recapture of Credit

You must pay a tax (recapture) on each gallon of second
generation biofuel at the rate you used to figure the credit
if you don’t use the fuel for the purposes described under
section 40(b)(6)(C). Report the tax on Form 720,
Quarterly Federal Excise Tax Return.

Specific Instructions
Line 1 and Line 2

These lines are reserved in case Congress extends the
credit to apply to fuel sold or used after December 31,
2017. When using these lines to figure the amount on this
or other tax forms or worksheets, the amount in these
lines should be considered to be zero.

Line 3

Enter total biofuel producer credits from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code I);
• Schedule K-1 (Form 1120S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code I);

Oct 01, 2018

Partnerships, S corporations, cooperatives, estates,
and trusts must always report the above credits on line 3.
All other taxpayers:
• Report the above credits directly on Form 3800, Part III,
line 4c; and
• Don’t file Form 6478.

Line 5

Cooperatives. A cooperative described in section
1381(a) can elect to allocate any part of the biofuel
producer credit to patrons of the cooperative. The credit is
allocated 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 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 cooperative is deemed to have made the election
by completing line 5. However, the election isn’t effective
unless:
• It’s made on a timely filed tax return (including
extensions), and
• The cooperative designates the apportionment in a
written notice or on Form 1099-PATR mailed to its patrons
during the payment period described in section 1382(d).
If the cooperative timely filed its return without making
an election, it 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 can’t be revoked.
Estates and trusts. 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. See the Instructions for Form 8582-CR.

Cat. No. 13606U

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You’re required to give us the information. We need it to ensure that you’re complying with these laws and
to allow us to figure and collect the right amount of tax.
You aren’t required to provide the information requested on a form that’s 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.

DRAFT AS OF
October 2, 2018

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 hr., 9 min.
53 min.
58 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,
we’d be happy to hear from you. See the instructions for the tax return with which this form is filed.

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Instructions for Form 6478 (2018)