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Department of the Treasury
Internal Revenue Service
Instructions for Form 8864

(Rev. January 2023)
Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit

Section references are to the Internal Revenue Code • Small agri-biodiesel producer credit.
unless otherwise noted.
Partnerships, S corporations, cooperatives, estates,
Future Developments and trusts must file this form to claim the credit. All other
taxpayers aren’t required to complete or file this form if
For the latest information about developments related to
their only source for this credit is a partnership, S
Form 8864 and its instructions, such as legislation
corporation, cooperative, estate, or trust. Instead, they
enacted after they were published, go to IRS.gov/
can report this credit directly on the appropriate line of
Form8864.
Form 3800, General Business Credit (for 2022, that’s Part
What's New III, line 1l).

Credit extension. The Inflation Reduction Act of 2022 Definitions and Special Rules
(IRA 2022) extended the section 40A biodiesel and
renewable diesel fuels credit. Certification
Sustainable aviation fuel. IRA 2022 created a To claim a credit on lines 1 through 6, you generally must
sustainable aviation fuel credit under section 40B, so attach the Certificate for Biodiesel and, if applicable,
line 8 is added to Form 8864. See Line 8, later. Statement of Biodiesel Reseller, to Form 8864. To claim a
credit on line 3 or 6, the certificate must indicate at all
Definition of renewable diesel and treatment of kero- appropriate locations that the fuel to which it relates is
sene. IRA 2022 made the following changes to the renewable diesel and state that the fuel meets the
definition of renewable diesel and the treatment of requirements discussed under Renewable Diesel, later.
kerosene, effective for fuel sold or used after December However, if the certificate or statement was attached to a
31, 2022. previously filed claim, attach a statement with the
• Renewable diesel no longer includes fuel derived from following information.
biomass that meets the requirements of a Department of • Certificate identification number.
Defense specification for military jet fuel or an American • Total gallons of agri-biodiesel, biodiesel other than
Society of Testing Materials (ASTM) specification for agri-biodiesel, or renewable diesel on the certificate.
aviation turbine fuel. • Total gallons claimed on Schedule 3 (Form 8849),
• • Kerosene is no longer treated as diesel fuel for Certain Fuel Mixtures and the Alternative Fuel Credit.
purposes of the renewable diesel mixture credit. • Total gallons claimed on Form 720, Quarterly Federal
Form 8864. The title of Form 8864 is changed to Excise Tax Return, Schedule C.
“Biodiesel, Renewable Diesel, or Sustainable Aviation • Total gallons claimed on Form 4136, Credit for Federal
Fuels Credit.” The changes on the form and the Tax Paid on Fuels.
instructions are made to reflect the sustainable aviation To claim a credit on line 8 for qualified mixtures
fuel credit. produced with a SAF synthetic blending component (SAF
Don’t claim the credit for biodiesel, renewable diesel, or that meets the qualifications of an ASTM D7566 Annex),
sustainable aviation fuel sold or used after 2024, unless the Certificate for SAF Synthetic Blending Component,
that credit is extended. Statement of SAF Synthetic Blending Component
Reseller (if applicable), and Declaration for SAF Qualified
Reminder Mixture must be attached to the first claim filed that’s
Periodic updating. Form 8864 and its instructions will no supported by the certificate or statement. However, if the
longer be updated annually. Instead, they’ll only be certificate, statement, and declaration were attached to a
updated when necessary. previously filed claim, attach a statement with the
following information.
• Certificate identification number.
General Instructions Total gallons of SAF synthetic blending component on
•
Purpose of Form the certificate.
• Total gallons claimed on Schedule 3 (Form 8849).
Use Form 8864 (Rev. January 2023) to claim your section Total gallons claimed on Form 720.
•
40A biodiesel and renewable diesel fuels credit or the Total gallons claimed on Form 4136.
•
section 40B sustainable aviation fuel credit. Claim the
credit for the tax year in which the sale or use occurs. The See Notice 2005-62 (biodiesel and aviation-grade
section 40A credit consists of the: kerosene) on page 443 of I.R.B. 2005-35 at
• Biodiesel credit, IRS.gov/Pub/IRB/IRB2005–35#NOT2005–62; Notice
• Renewable diesel credit, 2023-6, or Pub.510/ExciseTaxes, for more information.
• Biodiesel mixture credit,
• Renewable diesel mixture credit, and

Jan 25, 2023 Cat. No. 66373S

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Biodiesel or IRS No. 60(b) for the quarter in which the renewable
Biodiesel means the monoalkyl esters of long-chain fatty diesel was sold or used.
acids derived from plant or animal matter that meet the
registration requirements for fuels and fuel additives Biodiesel and Renewable Diesel Mixture Credits
established by the Environmental Protection Agency The biodiesel or renewable diesel reported on lines 4
(EPA) under section 211 of the Clean Air Act, and the through 6 must be used to make a qualified mixture. A
requirements of the American Society of Testing and qualified mixture combines biodiesel or renewable diesel
Materials (ASTM) D6751. with diesel fuel (defined below), determined without
Biodiesel includes both agri-biodiesel and biodiesel regard to any use of kerosene. However, treat the
other than agri-biodiesel. Biodiesel doesn’t include the kerosene as diesel fuel when figuring a renewable diesel
following. mixture credit for certain aviation fuel (see Renewable
• Fuel produced outside the United States or a U.S. Diesel above). The producer of the mixture either:
possession for use as a fuel outside the United States or a • Used it as fuel, or
U.S. possession. • Sold it as fuel to another person.
• Any liquid that is eligible for the section 40 biofuel
producer credit (Form 6478, Biofuel Producer Credit). The credit is available only to the producer of the
mixture. The producer must use or sell the mixture in a
Agri-Biodiesel trade or business and the credit is available only for the
year the mixture is sold or used. The credit isn’t allowed
Agri-biodiesel means biodiesel derived solely from virgin
for casual off-farm production of a qualified mixture.
oils, including esters derived from virgin vegetable oils
from corn, soybeans, sunflower seeds, cottonseeds, You may be liable for a 24.4 cents per gallon
canola, crambe, rapeseeds, safflowers, flaxseeds, rice ! excise tax on biodiesel or renewable diesel used
bran, mustard seeds, and camelina, and from animal fats. CAUTION to produce blended taxable fuel outside the bulk
transfer terminal system if the mixture is diesel fuel.
Renewable Diesel Report the tax liability on Form 720 on the line for IRS No.
Renewable diesel means liquid fuel derived from biomass 60(c) for the quarter in which the mixture was sold or
(defined below) that meets the registration requirements used.
for fuels and fuel additives established by the EPA under
section 211 of the Clean Air Act, and the requirements of Diesel fuel. Diesel fuel means:
the ASTM D975 or D396, or other equivalent standard • Any liquid that, without further processing or blending,
approved by the IRS. is suitable for use as a fuel in a diesel-powered highway
vehicle or diesel-powered train; and
Renewable diesel doesn’t include the following. • Transmix.
• Fuel produced outside the United States or a U.S.
possession for use as a fuel outside the United States or a A liquid is suitable for this use if the liquid has practical
U.S. possession. and commercial fitness for use in the propulsion engine of
• Any fuel derived from co-processing biomass with a diesel-powered highway vehicle or diesel-powered train.
feedstock that isn’t biomass. A liquid may possess this practical and commercial fitness
• Any liquid eligible for the section 40 biofuel producer even though the specified use isn’t the liquid's
credit (Form 6478). predominant use. However, a liquid doesn’t possess this
practical and commercial fitness solely by reason of its
Biomass. Biomass means any organic material other possible or rare use as a fuel in the propulsion engine of a
than oil, natural gas, or coal (including lignite), or any diesel-powered highway vehicle or diesel-powered train.
product of them. Diesel fuel doesn’t include gasoline, kerosene, excluded
liquid, No. 5 and No. 6 fuel oils covered by ASTM
Biodiesel and Renewable Diesel Credits specification D396, or F-76 (Fuel Naval Distillate) covered
The biodiesel or renewable diesel reported on lines 1 by military specification MIL-F-16884.
through 3 must not be a mixture. The credits are for An excluded liquid is any liquid that (a) contains less
biodiesel or renewable diesel, which during the tax year than 4% normal paraffins; or (b) has a (i) distillation range
you: of 125 degrees Fahrenheit or less, (ii) sulfur content of 10
• Used as a fuel in a trade or business, or parts per million or less, and (iii) minimum color of +27
• Sold at retail to another person and put in the fuel tank Saybolt. For example, biodiesel is always an excluded
of that person's vehicle. liquid because it doesn’t contain paraffins. However, a
However, no credit is allowed for fuel used in a trade or biodiesel mixture may not be an excluded liquid.
business that was purchased in a retail sale described Transmix means a by-product of refined products
above. created by the mixing of different specification products
You may be liable for a 24.4 cents per gallon during pipeline transportation.

! excise tax on biodiesel or renewable diesel you Qualified Agri-Biodiesel Production
CAUTION sold (in your trade or business) for use or used in
a diesel-powered highway vehicle or diesel-powered train. Qualified agri-biodiesel production means up to 15 million
Report the tax liability on Form 720 on the line for IRS No. gallons of agri-biodiesel that is produced by an eligible
79 for the quarter in which the biodiesel was sold or used, small agri-biodiesel producer (defined below), and that
during the tax year:

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1. Is sold by such producer to another person: 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)
a. For use by such person in the production of a (H)), as in effect on August 16, 2022.
qualified biodiesel mixture in such other person's trade or Aggregation rule. All members of the same controlled
business (other than casual off-farm production), group of corporations (see section 267(f)) and all persons
b. For use by such person as a fuel in a trade or under common control (see section 52(b) but treat an
business, or interest of more than 50% as a controlling interest) are
c. Who sells such agri-biodiesel at retail to another treated as 1 person for purposes of the 15- and
person and places such agri-biodiesel in the fuel tank of 60-million-gallon limits.
such other person; or Partnership, S corporation, and other pass-through
2. Is used or sold by such producer for any purpose entities. The 15- and 60-million-gallon limits discussed
described in (1). above are applied at both the entity level and at the
partner or similar level.
Note. Production of renewable diesel isn’t qualified
agri-biodiesel production. Registration
Eligible small agri-biodiesel producer. An eligible All producers and importers of biodiesel, renewable
small agri-biodiesel producer is a person who, at all times diesel, or sustainable aviation fuel must be registered with
during the tax year, has a productive capacity for the IRS. All persons producing blended taxable fuel must
agri-biodiesel not in excess of 60 million gallons. be registered. See Form 637, Application for Registration.

Sustainable aviation fuel credit. The term “sustainable Coordination With Excise Tax Credit
aviation fuel” means the portion of liquid fuel that isn’t Only one credit may be taken for any amount of biodiesel,
kerosene that: renewable diesel, or sustainable aviation fuel. If any
• Either (A) meets the specifications of one of the ASTM amount is claimed (or will be claimed) for any amount of
D7566 Annexes, or (B) meets the specifications of ASTM biodiesel, renewable diesel, or sustainable aviation fuel on
D1655 Annex A1; Form 720, Form 8849, Claim for Refund of Excise Taxes,
• Isn’t derived from coprocessing an applicable material or Form 4136, then a claim can’t be made on Form 8864
(or materials derived from an applicable material) with a for that amount of biodiesel, renewable diesel, or
feedstock that isn’t biomass; sustainable aviation fuel.
• Isn’t derived from palm fatty acid distillates or
petroleum; and Recapture of Credit
• Has been certified in accordance with section 40B(e) as
You must pay a tax (recapture) on each gallon of biodiesel
having a lifecycle greenhouse gas emissions reduction
or renewable diesel on which a credit was claimed at the
percentage of at least 50%.
rate used to figure the credit if you:
Qualified mixture. The term “qualified mixture” means a • Use it (including a mixture) other than as a fuel;
mixture of sustainable aviation fuel and kerosene but only • Buy it at retail and use it to create a mixture;
if: • Separate it from a mixture; or
• The mixture is produced by the taxpayer in the United • Use agri-biodiesel on which the small agri-biodiesel
States, producer credit was claimed for a use not described under
• Such mixture is used by the taxpayer (or sold by the Qualified Agri-Biodiesel Production, earlier.
taxpayer for use) in an aircraft,
• The sale or use is in the ordinary course of a trade or Report the tax on Form 720, Part II, IRS No. 117, for the
business of the taxpayer, and quarter in which you did any of the above.
• The transfer of such mixture to the fuel tank of such
aircraft occurs in the United States. Additional Information
See Pub. 510, Excise Taxes.
Applicable material. The term “applicable material”
means:
• Monoglycerides, diglycerides, and triglycerides; Specific Instructions
• Free fatty acids; and
• Fatty acid esters. Use lines 1 through 9 to figure any biodiesel, renewable
Lifecycle greenhouse gas emissions reduction per- diesel, or sustainable aviation fuel credit from your own
trade or business.
centage. The term “lifecycle greenhouse gas emissions
reduction percentage” means, for any sustainable aviation Skip lines 1 through 9 if you’re claiming only a credit
fuel, the percentage reduction in lifecycle greenhouse gas that was allocated to you from a pass-through entity (that
emissions achieved by such fuel as compared with is, an S corporation, partnership, estate, trust, or
petroleum-based jet fuel, as defined in accordance with cooperative).
the most recent Carbon Offsetting and Reduction Scheme
for International Aviation, which has been adopted by the Line 8
International Civil Aviation Organization with the Enter the correct rate in box 8(b). If more than one rate
agreement of the United States, or any similar applies, leave the Rate column blank and attach a
methodology which satisfies the criteria under section schedule showing the rates and number of gallons
claimed at each rate.

Instructions for Form 8864 (1-2023) -3-

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Line 9 If the cooperative is subject to the passive activity rules,
include on line 10 any Form 8864 credits from passive
Include this amount in income, under “other income” on activities disallowed for prior years and carried forward to
the applicable line of your income tax return, even if you this year. Complete Form 8810, Corporate Passive
can’t use all of the credit because of the tax liability limit. Activity Loss and Credit Limitations, to determine the
However, if you’re subject to alternative minimum tax allowed producer credits that can be allocated to patrons.
(AMT), this amount isn’t income in figuring AMT and must For details, see the Instructions for Form 8810.
be subtracted when figuring your alternative minimum
taxable income. Do this by including this amount on the The cooperative is deemed to have made the election
appropriate line of: by completing line 12. However, the election isn’t effective
• Form 6251, Alternative Minimum Tax—Individuals unless:
• Form 1041, Schedule I • It’s made on a timely filed return (including extensions);
and
Line 10 • The cooperative designates the apportionment in a
If you are allocated a small agri-biodiesel producer credit written notice or Form 1099-PATR, Taxable Distributions
from a pass-through entity, the entity must tell you the Received From Cooperatives, mailed to its patrons during
number of gallons for which it claimed the credit and its the payment period described in section 1382(d).
productive capacity for agri-biodiesel. You, as a If you timely filed your return without making an
shareholder, partner, beneficiary, or patron are subject to election, you can still make the election by filing an
the 15-million-gallon limitation for qualified agri-biodiesel amended return within 6 months of the due date of the
production and the 60-million-gallon productive capacity return (excluding extensions). Enter “Filed pursuant to
limitation for an eligible small agri-biodiesel producer. section 301.9100-2” on the amended return.
Once made, the election can’t be revoked.
Line 11
For 2022, report this amount on 2022 Form 3800, Part III, Estates and trusts. Allocate the biodiesel, renewable
line 1l. diesel, or sustainable aviation fuel credit on line 11
between the estate or trust and the beneficiaries in the
Line 12 same proportion as income was allocated and enter the
A cooperative, estate, or trust allocating the small beneficiaries’ share on line 12.
agri-biodiesel credit must give the patron or beneficiary a If the estate or trust is subject to the passive activity
statement providing them with the number of gallons for rules, include on line 10 any Form 8864 credits from
which it claimed the credit and its productive capacity for passive activities disallowed for prior years and carried
agri-biodiesel. An estate or trust must also provide the forward to this year. Complete Form 8582-CR, Passive
amount of the small agri-biodiesel credit included as part Activity Credit Limitations, to determine the allowed credit
of the pass-through credit. See the above instructions for that must be allocated between the estate or trust and the
line 10. beneficiaries. For details, see the Instructions for Form
Cooperatives. A cooperative described in section 8582-CR.

1381(a) can elect to allocate any part of the small Line 13
agri-biodiesel producer credit to patrons of the
For 2022, report this amount on 2022 Form 3800, Part III,
cooperative. The credit is allocated pro rata among the
line 1l.
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.

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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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 hr., 13 min.
Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       45 min.
Preparing and sending the form to the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2 hr., 5 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.

Instructions for Form 8864 (1-2023)                                                -5-

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