Publication 510
taxmap/pubs/p510-024.htm#en_us_201307_publink1000273841 | The alcohol fuel credit consisted of the alcohol credit, alcohol fuel mixture credit, small ethanol producer credit, and cellulosic biofuel producer credit. All, except for the cellulosic biofuel producer credit, expired on December 31, 2011. The cellulosic biofuel producer credit expires on December 31,
2012. |
taxmap/pubs/p510-024.htm#en_us_201307_publink1000274857
You can claim a credit for each gallon of qualified cellulosic biofuel
production if you are registered by the IRS as a cellulosic biofuel producer.
Cellulosic biofuel is defined in chapter 1
taxmap/pubs/p510-024.htm#en_us_201307_publink1000273835
Your qualified cellulosic biofuel production is any cellulosic biofuel you
produce and sell for use during the tax year to another person for any of the
following purposes.
- Use in the production of a qualified cellulosic biofuel mixture in that person’s trade or business (except casual off-farm production).
- Use as a fuel in that person’s trade or business.
- Sale at retail by that person who puts the cellulosic biofuel in the fuel tank of the buyer’s
vehicle.
Qualified production also includes your use or sale of cellulosic biofuel for these purposes. Qualified production does not include any alcohol bought by a producer who then increases the proof of the alcohol by additional
distillation.
taxmap/pubs/p510-024.htm#en_us_201307_publink1000278991A cooperative described in section 1381(a) can elect to allocate any part of the cellulosic biofuel producer credit to patrons of the cooperative. The credit is allocated among the patrons on the basis of the quantity or value of business done with or for the patrons for the tax year. For more information, see Form
6478.
taxmap/pubs/p510-024.htm#en_us_201307_publink1000278992If the credit is applied to a cellulosic biofuel producer and you do not use the cellulosic biofuel for a purpose listed under
Qualified cellulosic biofuel production, you must pay a tax equal to the credit. Report this tax on Form 720.
taxmap/pubs/p510-024.htm#en_us_201307_publink1000278993The credit is not allowed for cellulosic biofuel unless the cellulosic biofuel is produced in the United States and used as a fuel in the United States. The United States includes any possession of the United
States.
taxmap/pubs/p510-024.htm#en_us_201307_publink1000278994The credit is not available for fuel sold or used after December 31, 2009, if more than 4% of the fuel (determined by weight) is any combination of water and sediment, if the ash content of the fuel is more than 1%, or the fuel has an acid number greater than
25.
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You claim the credit by completing Form 6478. All individuals and corporations
taking the credit use Form 6478. Partnerships (including electing large
partnerships), corporations, estates, and trusts figure the credit on Form 6478
but divide the credit among their partners, shareholders, or beneficiaries.
If you claim the credit, you must include the credit for the tax year in your gross income for that year.
Form 6478 is the only form on which you can claim the cellulosic biofuel producer
credit.
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