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Page 2 of 3 Fileid: … ns/i6478/202310/a/xml/cycle04/source 12:46 - 5-Oct-2023
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
fuel additives established by the Environmental Protection • Schedule K-1 (Form 1041), Beneficiary’s Share of
Agency under section 211 of the Clean Air Act (42 U.S.C. Income, Deductions, Credits, etc., box 13 (code H); and
7545), and not include any fuel if: • Form 1099-PATR, Taxable Distributions Received From
• More than 4% of the fuel (determined by weight) is any Cooperatives, box 12, or other notice of credit allocation.
combination of water and sediment,
• The ash content of the fuel is more than 1% Partnerships, S corporations, cooperatives, estates,
(determined by weight), or and trusts must always report the above credits on line 3.
• The fuel has an acid number greater than 25. All other taxpayers:
Also, once this fuel is sold by the producer to another • Report the above credits directly on the appropriate line
person for refining by such person into a fuel that will meet of Form 3800; and
these requirements, neither the producer nor any other • Don’t file Form 6478.
person can use such fuel (or any fuel derived from such
fuel) to figure a second credit for qualified second Line 4
generation biofuel production. Partnerships and S corporations report this amount on
Schedule K using the appropriate code. All others report
Registration this amount on the appropriate line of Form 3800.
All producers of second generation biofuel must be
registered with the IRS. See Form 637, Application for Line 5
Registration. Cooperatives. A cooperative described in section
1381(a) can elect to allocate any part of the biofuel
Recapture of Credit
producer credit to patrons of the cooperative. The credit is
You must pay a tax (recapture) on each gallon of second allocated pro rata among the patrons eligible to share in
generation biofuel at the rate you used to figure the credit patronage dividends on the basis of the quantity or value
if you don’t use the fuel for the purposes described under of business done with or for the patrons for the tax year.
Qualified Second Generation Biofuel Production, earlier.
If the cooperative is subject to the passive activity rules,
Report the tax on Form 720, Quarterly Federal Excise include on line 3 any Form 6478 credits from passive
Tax Return. 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
Specific Instructions producer credits that can be allocated to patrons. For
details, see the Instructions for Form 8810.
Line 1
The cooperative is deemed to have made the election
Enter the number of gallons of second generation biofuel by completing line 5. However, the election isn’t effective
sold or used for the tax year that meets the conditions unless:
listed under Qualified Second Generation Biofuel It’s made on a timely filed tax return (including
•
Production, earlier. Multiply by the rate of $1.01 per gallon. extensions), and
Line 2 • The cooperative designates the apportionment in a
written notice or on Form 1099-PATR mailed to its patrons
The credit shown in column (c) on line 1 must be included
during the payment period described in section 1382(d).
in income under “other income” on the applicable line of
your income tax return, even if you can’t use all of the If you timely filed your return without making an
credit because of the tax liability limit. However, if you’re election, you can still make the election by filing an
subject to the alternative minimum tax (AMT), this amount amended return within 6 months of the due date of the
isn’t income in figuring AMT and must be subtracted when return (excluding extensions). Write “Filed pursuant to
figuring your alternative minimum taxable income. Do this section 301.9100-2” on the amended return.
by including this amount on the appropriate line of Form Once made, the election can’t be revoked.
6251, Alternative Minimum Tax—Individuals, or
Estates and trusts. Allocate the biofuel producer credit
Schedule I (Form 1041), Alternative Minimum
on line 4 between the estate or trust and the beneficiaries
Tax—Estates and Trusts.
in the same proportion as income was allocated and enter
Registration number. To claim a second generation the beneficiaries’ share on line 5.
biofuel producer credit on line 1, you must be registered If the estate or trust is subject to the passive activity
with the IRS. Enter your SB registration number in the rules, include on line 3 any Form 6478 credits from
space provided. For more information, see Form 637 and passive activities disallowed for prior years and carried
Pub. 510, Excise Taxes. forward to this year. Complete Form 8582-CR, Passive
Activity Credit Limitations, to determine the allowed credit
Line 3
that must be allocated between the estate or trust and the
Enter the total biofuel producer credits from: beneficiaries. See the Instructions for Form 8582-CR.
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code l); Line 6
• Schedule K-1 (Form 1120-S), Shareholder’s Share of Cooperatives, estates, and trusts report this amount on
Income, Deductions, Credits, etc., box 13 (code l); the appropriate line of Form 3800.
-2- Instructions for Form 6478 (Rev. 10-2023)
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