OMB No. 1545-0231 Credit for Alcohol Used as Fuel

Form 6478

© Attach to your return.

Department of the Treasury

Internal Revenue Service

Attachment

© For Paperwork Reduction Act Notice, see instructions. Sequence No. 83

Name(s) as shown on return Identifying number

(b)

Rate

(c)

Column (a) x Column (b)

(a)

Number of Gallons

Sold or Used

Type of Alcohol Fuel

1

Straight alcohol and alcohol mixtures:

2a .54

b

190 proof or greater (in gallons)

2b .40

c

Less than 190 proof but at least 150 proof (in gallons)

2c

2

Add lines 2a and 2b in both columns

3 Other fuels blended with the alcohol above 3

4 Total gallons of fuel. Add lines 2c and 3 (column (a)) 4

Total gallons containing less than 10% of 190-proof alcohol

or that are exempt from excise taxes

5

5

6 Subtract line 5 from line 4 6

7 Break down line 6 into the number of gallons of:

Noncommercial aviation fuel—

a Alcohol or alcohol blended with aviation fuels 7a .1293

b Alcohol blended with gasoline 7b .0444

All other fuel on line 6 that received exemption or reduced rate—

c Less than 85% alcohol blended with fuel (see instructions) 7c .054

85% or more alcohol: (i) Methanol/ethanol produced from

other than petroleum or natural gas (see instructions)

d

7d(i) .0545

(ii) Alcohol produced from natural gas 7d(ii) .07

8 Add lines 7a through 7d, column (c) 8

9 Credit less excise tax benefit. Subtract line 8 from line 2c. Include this amount in your income for 1992 9

10 Flow-through alcohol fuel credit(s) from a partnership, S corporation, estate, or trust (see instructions) 10

11 Current year credit for alcohol used as fuel. Add lines 1, 9, and 10 11

Only the rate for ethanol is shown. See instructions for lines 2 and 7 for rates for alcohol other than ethanol.

See Who Must File Form 3800, General Business Credit, to see if you complete the lines below or file Form 3800.

12a Individuals. Enter amount from Form 1040, line 40

b Corporations. Enter amount from Form 1120, Schedule J, line 3 (or Form 1120-A, Part I, line 1) 12

c Other filers. Enter regular tax before credits from your return

13 Credits that reduce regular tax before the credit for alcohol used as fuel:

a Credit for child and dependent care expenses (Form 2441) 13a

b Credit for the elderly or the disabled (Schedule R (Form 1040)) 13b

c Foreign tax credit (Form 1116 or Form 1118) 13c

d Possessions tax credit (Form 5735) 13d

e Mortgage interest credit (Form 8396) 13e

Credit for fuel from a nonconventional source 13f f

g Orphan drug credit (Form 6765) 13g

h Add lines 13a through 13g 13h

14 Net regular tax. Subtract line 13h from line 12 14

15 Tentative minimum tax (see instructions):

a Individuals. Enter amount from Form 6251, line 20

b Corporations. Enter amount from Form 4626, line 15 15

c Estates and trusts. Enter amount from Form 1041, Schedule H, line 37

16 Net income tax:

a Individuals. Add line 14 above and line 22 of Form 6251

b Corporations. Add line 14 above and line 17 of Form 4626 16

c Estates and trusts. Add line 14 above and line 39 of Form 1041, Schedule H

17 If line 14 is more than $25,000, enter 25% (.25) of excess (see instructions) 17

Subtract line 15 or line 17, whichever is greater, from line 16. Enter the result. If less than zero, enter -0- 18 18

Credit for alcohol used as fuel allowed for the current year. Enter the smaller of line 11 or line 18.

This is your General Business Credit for 1992. Enter here and on Form 1040, line 44; Form 1120,

Schedule J, line 4e; Form 1120-A, Part I, line 2a; or the appropriate line of other income tax returns

19

19

1 .10

a

Qualified ethanol fuel production (in gallons)

%

%

Cat. No. 13605J

*

*

Form 6478 (1992)

%

Form 6478 (1992) Page 3

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.

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is:

Recordkeeping 10 hr., 31 min.

Learning about the

law or the form 34 min.

Preparing the form 1 hr., 41 min.

Copying, assembling, and

sending the form to the IRS 16 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form more

simple, we would be happy to hear from

you. You can write to both the IRS and

the Office of Management and Budget

at the addresses listed in the

instructions of the tax return with which

this form is filed.

Items To Note

● Because of limited space on the form,

we have shown only the rate for alcohol

from ethanol in column (b) for lines 2

and 7. We have included the rates for

alcohol other than from ethanol in the

Specific Instructions for each line. If

you have a credit for alcohol other than

from ethanol, enter in column (b) the rate

from the instructions for the applicable

line.

General Instructions

Purpose of Form

Use Form 6478 to figure your credit for

alcohol used as fuel. The credit consists

of the: (1) alcohol mixture credit;

(2) alcohol credit; and (3) small ethanol

producer credit. If you have only the

small ethanol producer credit, do not

complete lines 2 through 9.

You may claim or elect not to claim

the alcohol fuel credit at any time within

Who Must File Form 3800,

General Business Credit

The general business credit consists of

several credits including the investment

credit (Form 3468), jobs credit (Form

5884), credit for alcohol used as fuel

(Form 6478), research credit (Form

6765), low-income housing credit (Form

8586), enhanced oil recovery

credit (Form 8830), disabled access

credit (Form 8826) and renewable

electricity production credit (Form 8835).

If you have more than one of these

credits for 1992, a carryback or

carryforward of any of these credits, or a

credit for alcohol used as fuel from a

passive activity, you must also file Form

3800, which is used instead of lines 12

through 19 to figure the tax liability

limitation.

Definitions and Special

Rules

Alcohol.—Alcohol, for credit purposes

other than the small ethanol producer

credit, includes ethanol and methanol

but does not include:

1. Alcohol produced from petroleum,

natural gas, or coal (including peat), or

2. Alcohol of less than 150 proof. In

figuring the proof of any alcohol,

disregard any denaturants (additives that

make the alcohol unfit for human

consumption). The volume of alcohol

includes any denaturant up to 5% of the

volume of the alcohol and denaturant

combined.

Alcohol mixture.—The alcohol must be

used to make a qualified mixture. A

qualified mixture combines alcohol with

gasoline, diesel, or special motor fuel.

The producer of the mixture either:

1. Uses it as fuel, or

2. Sells it as fuel to another person.

The credit is available only to the

producer who blends the mixture. The

producer must use or sell the mixture in

a trade or business and the credit is

available only for the year the mixture is

sold or used. The credit is not allowed

for casual off-farm production of a

qualified mixture.

Straight alcohol.—The alcohol must not

be a mixture with gasoline, diesel, or

special motor fuel (other than as a

denaturant). The credit is for alcohol that

during the tax year is:

1. Used by the taxpayer as a fuel in a

trade or business, or

2. Is sold by the taxpayer at retail to

another person and put in the fuel tank

of that person’s vehicle.

Qualified ethanol fuel production.—

This is ethanol produced by an eligible

1. Is sold by the producer to another

person–

a. For use by the buyer in the buyer’s

trade or business to produce a qualified

mixture (other than casual off-farm

production),

b. For use by the buyer as a fuel in a

trade or business, or

c. Who sells the ethanol at retail to

another person and puts the ethanol in

the retail buyer’s fuel tank; or

2. Is used or sold by the producer for

any purpose described in 1 above.

Diesel fuel.—Diesel fuel is any liquid

other than gasoline that can be used as

a fuel in a diesel-powered highway

vehicle.

Special motor fuel.—This is any liquid

other than gasoline that is suitable for

use or is used in a motor vehicle or

motor boat.

Noncommercial aviation.—This is the

use of an aircraft other than in a

business of transporting persons or

property for pay.

Recapture of credit if not used as

fuel.—You must pay the tax on each

gallon of the alcohol or the alcohol in the

mixture at the applicable rate that you

used to figure the credit if you claim any

alcohol fuel credit and later you:

1. Separate the alcohol from the

mixture,

2. Use the mixture other than as a fuel,

3. Mix straight alcohol on which the

credit was allowed for the retail sale,

4. Use the straight alcohol other than

as a fuel, or

5. Do not use the fuel for the

purposes described under Qualified

ethanol fuel production.

Specific Instructions

Use lines 1 through 9 to figure any

alcohol fuel credit from your own trade

or business.

Note: We have shown in column (b) the

rate for ethanol only. If you have a credit

for alcohol other than from ethanol, enter

in column (b) the rate shown in the

instructions for lines 2a, 2b, and 7a

through 7d(ii).

Skip lines 1 through 9 if you are

claiming only a credit that was allocated

to you from a flow-through entity (i.e., S

corporation, partnership, estate, or trust).

Report the tax on Form 720, Quarterly

Federal Excise Tax Return.

Eligible small ethanol producer.—This

is a person who, at all times during the

tax year, has a productive capacity for

alcohol of 30 million gallons or less. This

includes alcohol made from petroleum,

natural gas, coal, peat, and alcohol with

proof of less than 150.

● The Energy Policy Act of 1992

extended the partial excise tax

exemption for gasoline that is mixed

with alcohol to include blends that

contain less than 10% alcohol. This

change is effective for gasoline

withdrawn after December 31, 1992.

Fiscal year filers who blend gasohol

should use the following rates on line

7c:

Percentage

of Alcohol

Credit Rate Per Gallon

Ethanol Other than Ethanol

10% or more

7.5 to 9.9%

5.7 to 7.6%

4.44

3.33

2.42

5.10

3.83

2.78

the 3 years from the due date of your

return on either an original or an

amended return (determined without

regard to extensions).

small ethanol producer (defined below)

and during the tax year:
Line 2a.—Enter the number of gallons of

190 proof or greater alcohol and multiply

by the rate.

For alcohol other than from ethanol,

the rate is 60 cents per gallon.

Line 2b.—Enter the number of gallons of

alcohol that is less than 190 proof but at

least 150 proof and multiply by the rate.

For alcohol other than from ethanol,

the rate is 45 cents per gallon.

Line 3.—Enter the number of gallons of

other fuels that you blended with the

alcohol shown on lines 2a and 2b. Other

fuels include gasoline, diesel, and

special motor fuels.

Line 5.—Enter the number of gallons

included on line 4 that contain less than

10% of 190-proof alcohol or are exempt

from excise taxes. The fuel can be

exempt because of specific exemption,

credit, or refund provisions other than

the alcohol fuel credit. Examples of fuels

exempt from excise tax include fuel that

is:

● Used on a farm for farming purposes.

● Supplied to military ships or aircraft or

certain commercial ships or aircraft.

● Used in off-highway business use.

● Used as fuel by a state, any political

subdivision of a state, or the District of

Columbia.

● Used as fuel by a nonprofit

educational organization.

● Used in an intercity, local, or school

bus.

● Used for certain helicopter uses.

Line 7.—If you sold or used alcohol or

an alcohol mixture as fuel, you may have

been entitled to an exemption from

excise tax or a reduced rate of excise

tax. The alcohol fuel credit on lines 2a

and 2b must be reduced to take into

account any benefit provided by that

exemption or reduced rate.

Lines 7a and 7b.—Enter on line 7a the

number of gallons of aviation fuel that is

alcohol or alcohol blended with aviation

fuels other than gasoline.

The benefit for alcohol other than from

ethanol or alcohol other than from

ethanol blended with aviation fuels

(other than gasoline) is 13.61 cents per

gallon.

Enter on line 7b the number of gallons

of aviation fuel that is alcohol blended

with gasoline.

The benefit for alcohol other than from

ethanol is 5.11 cents per gallon.

Lines 7c and 7d.—This includes all

other uses that received an excise tax

benefit because the fuels contained

alcohol (e.g., gasoline bought at a

reduced rate to produce gasohol). See

Items To Note on page 3 for certain

gasohol rates effective after 1992.

Include only fuel mixtures that received

an excise tax benefit because the fuel

contained alcohol.

Line 7c.—Enter the number of gallons of

fuel that is a mixture containing less

than 85% alcohol.

The benefit for alcohol other than from

ethanol is 6 cents per gallon.

Line 7d.—Enter the number of gallons of

fuel that contain 85% or more alcohol.

On line 7d(i), enter the number of

gallons of fuel containing alcohol

produced from other than petroleum or

natural gas.

For alcohol other than from ethanol,

the benefit is 6.05 cents per gallon.

On line 7d(ii), enter the number of

gallons of fuel containing 85% or more

alcohol produced from natural gas. The

benefit rate is 7 cents per gallon for

ethanol or alcohol other than from

ethanol.

Line 9.—Include this amount in income,

under “Other income” on the appropriate

line of your income tax return, even if

you cannot use all the credit because of

the tax liability limitation.

Line 10.—Enter the amount of credit

that was allocated to you as a

shareholder, partner, or beneficiary.

Line 11.—If you have more than one of

the credits listed under Who Must File

Form 3800, General Business Credit,

or a credit for alcohol used as fuel from

a passive activity, stop here and go to

Form 3800.

For an estate or trust, the credit on

line 11 is allocated among the

beneficiaries in the same manner as the

income was allocated. In the margin to

the right of line 11, the fiduciary of the

estate or trust identifies its share and

the beneficiaries’ shares of the total

credit. Complete lines 12 through 19, as

applicable, to figure the credit to take on

Form 1041. Attach a schedule to Form

6478 showing how the total credit was

divided.

Line 15—Enter the tentative minimum

tax (TMT) that was figured on the

appropriate alternative minimum tax

(AMT) form or schedule. Although you

may not owe AMT, you must still

compute the TMT to figure your credit.

Line 17.—See section 38(c)(2) for

special rules for married couples filing

separate returns, for controlled corporate

groups, and for estates and trusts.

Line 19.—If you cannot use part of the

credit because of the tax liability

limitations, carry it back 3 years, then

forward for 15 years. See the separate

Instructions for Form 3800 for details.

Form 6478 (1992) Page 4

Line 2.—Enter on the appropriate line

the number of gallons sold or used.

Line 1.—Enter the number of gallons of

ethanol that meet the conditions listed

under Qualified ethanol fuel

production. Do not enter more than 15

million gallons. Multiply by the rate of 10

cents per gallon. If you have only the

small ethanol producer credit, do not

complete lines 2 through 9.

If your credit from a flow-through

entity includes the small ethanol

producer credit, the flow-through entity

must tell you the amount of the small

producer credit included in the

flow-through credit, the number of

gallons for which the entity claimed the

small ethanol producer credit, and the

productive capacity for alcohol. You as a

shareholder, partner, beneficiary, etc.,

are subject to the 15 million gallon

limitation for line 1 and the 30 million

gallon productive capacity limitation for

an eligible small ethanol producer. If you

receive a small ethanol producer credit

from more than one entity, your credit

may be limited.

If you have only a 1992 credit for

alcohol used as fuel, and the credit is

not from a passive activity, complete this

form. You do not have to file Form 3800

for this year.

S Corporations,

Partnerships, Estates, and

Trusts

Figure the total credit on lines 1 through

11. Then allocate the line 11 credit to

each shareholder, partner, and

beneficiary in the same way that income

and loss are divided.

If the line 11 credit includes any small

ethanol producer credit (line 1), you

must separately state to each

shareholder, partner, beneficiary, etc.,

the number of gallons on which the

credit was figured, and the productive

capacity for alcohol that you, the

pass-through entity, have. State the

productive capacity in terms of gallons.