8864 Instructions for Form 8864

Caution: DRAFT—NOT FOR FILING
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2018

Instructions for Form 8864

Department of the Treasury
Internal Revenue Service

Biodiesel and Renewable Diesel Fuels Credit

DRAFT AS OF
September 25, 2018
statement providing them with the number of gallons for
which it claimed the credit and its productive capacity for
agri-biodiesel. An estate or trust must also provide the
amount of the small agri-biodiesel credit included as part
of the pass-through credit. See the above instructions for
line 9.

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

General Instructions

Future Developments

For the latest information about developments related to
Form 8864 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8864.

What’s New

At the time these instructions went to print, the
biodiesel and renewable diesel fuels credit
CAUTION formerly claimed on lines 1 through 8 had expired.
You can’t claim the credit on lines 1 through 8 for biodiesel
and renewable diesel fuels sold or used after 2017. Lines
1 through 8 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.

!

Purpose of Form

Use the 2018 Form 8864 to report any biodiesel and
renewable fuels credit you received from a fiscal year
partnership, S corporation, cooperative, estate, or trust
whose tax year began in 2017 (when the credit was still
available) and ends during your 2018 tax year.

Specific Instructions
Lines 1 Through 8

These lines are now shown as “Reserved for future use” in
case Congress extends the credit for 2018. When any
form, worksheet, or instructions refers to these lines, treat
the amounts on these lines as zero.

Line 9

If you’re allocated a small agri-biodiesel producer credit
from a pass-through entity, the entity must tell you the
number of gallons for which it claimed the credit and its
productive capacity for agri-biodiesel. You, as a
shareholder, partner, beneficiary, or patron, are subject to
the 15-million-gallon limitation for qualified agri-biodiesel
production and the 60-million-gallon productive capacity
limitation for an eligible small agri-biodiesel producer.

Line 11

A cooperative, estate, or trust allocating the small
agri-biodiesel credit must give the patron or beneficiary a

May 11, 2018

Cooperatives. A cooperative described in section
1381(a) can elect to allocate any part of the small
agri-biodiesel 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 9 any Form 8864 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 11. However, the election is not
effective unless:
• It is made on a timely filed return (including extensions);
and
• The cooperative designates the apportionment in a
written notice or Form 1099-PATR, Taxable Distributions
Received From Cooperatives, 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). Enter “Filed pursuant to
section 301.9100-2” on the amended return.
Once made, the election cannot be revoked.

Estates and trusts. Allocate the biodiesel and
renewable diesel fuels credit on line 10 between the
estate or trust and the beneficiaries in the same proportion
as income was allocated and enter the beneficiaries’
share on line 11.
If the estate or trust is subject to the passive activity
rules, include on line 9 any Form 8864 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.

Cat. No. 66373S

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.

DRAFT AS OF
September 25, 2018
h

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 hr., 25 min.
45 min.
2 hr., 01 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.

-2-

Instructions for Form 8864 (2018)