OMB No. 1545-0231

Form 6478

Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 83

Name(s) shown on return Identifying number

(b)

Rate

(c)

Column (a) x Column (b)

(a)

Number of Gallons of

Alcohol Sold or Used

Type of Alcohol Fuel

1

2 $.51

Alcohol 190 proof or greater and alcohol 190 proof or greater 

in fuel mixtures 

3

3

2

Alcohol less than 190 proof but at least 150 proof and alcohol 

less than 190 proof but at least 150 proof in fuel mixtures 

5 Alcohol fuel credit from a partnership, S corporation, cooperative, estate, or trust (see instructions) 5

6

6 Add lines 4 and 5. Partnerships and S corporations, report this amount on Schedule K. All others, 

go to line 7 

7 Alcohol fuel credit included on line 6 from passive activities (see instructions) 7

8 Subtract line 7 from line 6 8

9 Alcohol fuel credit allowed for 2007 from a passive activity (see instructions) 9

10 Carryforward from 2006 and carryback from 2008 of the alcohol fuel credit (see instructions) 10

11

11 Add lines 8 through 10. Cooperatives, estates, and trusts, go to line 12. All others, use this

amount to complete Part II 

Only the rate for ethanol is shown. See instructions for lines 2 and 3 for rates for alcohol other than ethanol.

Allowable Credit

1 $.10 Qualified ethanol fuel production (in gallons)

(see instructions for election)

*

Credit for Alcohol Used as Fuel

© Attach to your tax return.

*

14

17a

17a

Credits from Form 1040, lines 47 through 50 and 52 through 54 (or

Form 1040NR, lines 44, 45, and 47 through 49)

b 17b

17d

Foreign tax credit

d

f Add lines 17a through 17e 17f

18

Net income tax. Subtract line 17f from line 16. If zero, skip lines 19 through 22 and enter -0- on 

line 23

15 Alternative minimum tax (see instructions) 15

18

19 Net regular tax. Subtract line 17f from line 14. If zero or less, enter -0- 

21 Subtract line 20 from line 18. If zero or less, enter -0-

Subtract line 22d from line 21. If zero or less, enter -0-

22a

24

14 Regular tax before credits (see instructions)

16 Add lines 14 and 15 16

20

General business credit (Form 3800, line 19)

20

21

Enter 25% (.25) of the excess, if any, of line 19 over $25,000 (see instructions)

23 23

24

e

17e

Part I

Part II

Current Year Credit

Caution: You cannot claim any amounts on Form 6478 that you claimed (or will claim) on Schedule C (Form 720), Form 8849, or

Form 4136.

$.3778

19

Non-business alternative fuel vehicle refueling property credit (Form

8911, line 19)

Non-business alternative motor vehicle credit (Form 8910, line 18)

4 Add the amounts in column (c) on lines 1, 2, and 3. Include this amount in your income for 2007 (see instructions) 4

12

12 Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see

instructions) 

13

13 Cooperatives, estates, and trusts. Subtract line 12 from line 11. Use this amount to complete

Part II 

Credit allowed for the current year. Cooperatives, estates, and trusts. Enter the smaller of

line 13 or 23. Report this amount on Form 1120-C, Schedule J, line 5c; or Form 1041, Schedule

G, line 2c. If line 23 is smaller than line 13, see instructions. All others. Enter the smaller of line

11 or 23. Report this amount on Form 1040, line 55; Form 1040NR, line 50; Form 1120, Schedule 

J, line 5c; or the applicable line of your return. If line 23 is smaller than line 11, see instructions

2007

b Empowerment zone and renewal community employment credit (Form 

8844, line 26)

d

c Work opportunity credit (Form 5884, line 22)

Add lines 22a through 22c

22b

22d

22c

c Credits from Forms 5735 and 8834 17c

22a
Form 6478 (2007) Page 2

General Instructions

Purpose of Form

Use Form 6478 to figure your credit for alcohol used as

fuel. You claim the credit for the tax year in which the

sale or use occurs. This credit consists of the:

You may claim or elect not to claim the alcohol fuel

credit at any time within 3 years from the due date of

your return (determined without regard to extensions)

on either an original or an amended return for the tax

year of the sale or use.

Definitions and Special Rules

Alcohol

● Alcohol produced from petroleum, natural gas, or coal

(including peat). Methanol produced from methane gas

formed in waste disposal sites is not alcohol produced

from natural gas, and is included for credit purposes.

● Used it as fuel, or

● Sold it as fuel to another person.

● Used as a fuel in a trade or business, or

● Sold at retail to another person and put in the fuel

tank of that person’s vehicle.

Qualified Ethanol Fuel Production

2. Is sold by the producer to another person—

● For use by the buyer in the buyer’s trade or business

to produce a qualified mixture (other than casual

off-farm production),

● For use by the buyer as a fuel in a trade or business,

or

● Who sells the ethanol at retail to another person and

puts the ethanol in the retail buyer’s fuel tank; or

3. Is used or sold by the producer for any purpose

described in 2 above.

Recapture of Credit

● Separate the alcohol from the mixture,

● Use the mixture other than as a fuel,

● Mix alcohol on which the credit was allowed for the

retail sale,

● Use the alcohol other than as a fuel, or

● Do not use the fuel for the purposes described under

Qualified Ethanol Fuel Production.

Report the tax on Form 720.

Eligible Small Ethanol Producer

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.

● Alcohol mixture credit,

● Alcohol credit, and

● Small ethanol producer credit.

Alcohol Fuel Mixture

However, no credit is allowed for alcohol you used

as a fuel in a trade or business if that alcohol was sold

in a retail sale described above.

Section references are to the Internal Revenue Code.

Alcohol, for credit purposes, includes ethanol and

methanol but does not include the following.

The alcohol must be used to make a qualified mixture.

A qualified mixture combines alcohol with gasoline or

special fuel. The producer of the mixture either:

The alcohol must not be a mixture with gasoline or

special fuel (other than as a denaturant). The credit is for

alcohol which during the tax year you:

This is ethanol produced by an eligible small ethanol

producer (defined below) which during the tax year:

This is a person who, at all times during the tax year,

has a productive capacity for alcohol of 60 million

gallons or less. This capacity includes alcohol made

from petroleum, natural gas, coal, peat, and alcohol of

less than 150 proof.

You must pay a tax on each gallon of alcohol (or the

alcohol in the mixture) at the rate you used to figure

the credit if you:

Caution: Before claiming a credit on Form 6478, the

alcohol fuel mixture credit must be taken against any

section 4081 liability on Form 720. Any credit in

excess of the section 4081 liability can be taken as a

claim for payment on Form 8849 or an income tax

credit on Form 4136.

Registration

All producers and importers of alcohol with a proof of at

least 190 must be registered with the IRS. See Form

637, Application for Registration (For Certain Excise Tax

Activities).

Coordination With Excise Tax Credit

Only one credit may be taken with respect to any gallon

of alcohol in a mixture reported on line 2. If any amount

is claimed (or will be claimed) with respect to any gallon

of alcohol on Form 720, Quarterly Federal Excise Tax

Return, Form 8849, Claim for Refund of Excise Taxes,

or Form 4136, Credit for Federal Tax Paid on Fuels, then

a claim cannot be made on Form 6478 for that gallon of

alcohol.

● 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.

1. Does not exceed 15 million gallons;
Line 12

Form 6478 (2007) Page 3

Estate or trust. Allocate the credit for alcohol used as

fuel on line 11 between the estate or trust and the

beneficiaries in the same proportion as income was

allocated and enter the beneficiaries’ share on line 12.

Line 5

If your credit from a pass-through entity includes the

small ethanol producer credit, you, as a partner,

shareholder, patron, or beneficiary, are subject to the

15-million-gallon limitation for line 1 and the

60-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.

Enter the amount of credit that was allocated to you as

a partner, shareholder, patron, or beneficiary.

Line 2

Enter the number of gallons of alcohol that is 190

proof or greater and alcohol that is 190 proof or

greater in qualified mixtures (mixtures of alcohol and

gasoline or alcohol and special fuels). For alcohol other

than ethanol, the rate is 60 cents per gallon.

Line 3

Enter the number of gallons of alcohol that is less than

190 proof but at least 150 proof and alcohol that is

less than 190 proof but at least 150 proof in qualified

mixtures (mixtures of alcohol and gasoline or alcohol

and special fuels). For alcohol other than ethanol, the

rate is 45 cents per gallon.

Line 7

Enter the amount included on line 6 that is from a

passive activity. Generally, a passive activity is a trade

or business in which you did not materially participate.

Rental activities are generally considered passive

activities, whether or not you materially participate. For

details, see Form 8582-CR, Passive Activity Credit

Limitations (for individuals, trusts, and estates), or

Form 8810, Corporate Passive Activity Loss and Credit

Limitations (for corporations).

Line 9

Enter the passive activity credit allowed for the 2007

credit for alcohol used as fuel from Form 8582-CR or

Form 8810.

Line 10

Carryforward. Use line 10 to show any carryforward of

the credit from 2006. For carryforwards of the credit

from years prior to 2005, show such carryforwards on

line 6 of Form 3800.

Line 6

● The amount of the small ethanol producer credit

included as part of the pass-through credit;

● The number of gallons claimed at the entity level for

the small ethanol producer credit; and

● The productive capacity of the entity.

If the credit includes the small ethanol producer credit,

the partnership (other than an electing large partnership)

or S corporation must provide the following additional

information:

● The amount of the small ethanol producer credit

included as part of the pass-through credit;

● The number of gallons claimed by the estate or trust

for the small ethanol producer credit; and

● The productive capacity of the estate or trust.

If the credit includes the small ethanol producer

credit, the estate or trust must provide the following

The total credit shown in column (c) on lines 1, 2, and 3, additional information:

must be included in income under “other income” on

the applicable line of your income tax return, even if you

cannot use all of the credit because of the tax liability

limit. However, if you are subject to the alternative

minimum tax (AMT), this amount is not income in

computing AMT and must be subtracted when figuring

your alternative minimum taxable income. Do this by

including this amount on line 26 of Form 6251, line 23 of

Schedule I, Form 1041, or line 2o of Form 4626.

Line 4

Cooperative election to allocate the small ethanol

producer credit to patrons. A cooperative described in

section 1381(a) can elect to allocate any part of the

small ethanol producer credit to patrons of the

cooperative. To make the election, attach a statement

to the effect that the cooperative elects to allocate the

credit 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.

Carryback. Use line 10 to show any carryback if you

amend your 2007 return to carry back an unused credit

from 2008.

Line 1

Enter the number of gallons of ethanol, up to 15 million

gallons, that meet the conditions listed under Qualified

Ethanol Fuel Production on page 2. Multiply by the rate

of 10 cents per gallon.

Note. We have shown in column (b) the rate for

ethanol only. If you have a credit for alcohol other than

ethanol, enter in column (b) the applicable rate shown

in the instructions for lines 2 and 3.

Important: The amount of the credit determined for

lines 2 and 3 below with respect to alcohol in qualified

mixtures must be reduced by the excise tax benefit for

qualified methanol or ethanol fuel reflected on Form

720. See sections 40(c) and 4041(b)(2).

Part I. Current Year Credit

Use lines 1 through 3 to figure any alcohol fuel credit

from your own trade or business.

Specific Instructions

The election is not effective unless:

● The statement described above is attached to the

timely filed tax return (including extensions) for the tax

year associated with the election. However, if you

already made the election on a tax return filed before

June 15, 2006, but failed to attach the required

statement to that tax return, attach the statement to

your next filed return.
Form 6478 (2007) Page 4

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.

Recordkeeping 8 hr., 51 min.

Learning about the

law or the form 47 min.

Preparing and sending the form

to the IRS 58 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.

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.

Line 24

If you cannot use all of the credit because of the tax

liability limit, carry the unused credit back 1 year then

forward up to 20 years.

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.

Part II. Allowable Credit

The credit allowed for the current year may be limited

based on your tax liability. Use Part II to figure the

allowable credit.

Line 14

Enter the regular tax before credits from the following

line of the appropriate form or schedule:

● Individuals: Form 1040, line 44; Form 1040NR, line 41.

● Corporations: Form 1120, Schedule J, line 2; or the

applicable line of your return.

● Estates and trusts: The sum of the amounts from

Form 1041, Schedule G, lines 1a and 1b; or the amount

from the applicable line of your return.

Line 15

Enter the alternative minimum tax (AMT) from the

following line of the appropriate form or schedule:

● Individuals: Form 6251, line 35.

● Corporations: Form 4626, line 14.

● Estates and trusts: Form 1041, Schedule I, line 56.

Line 20

See section 38(c)(5) for special rules that apply to

married couples filing separate returns, controlled

corporate groups, regulated investment companies,

real estate investment trusts, and estates and trusts.

● The number of gallons claimed by the cooperative.

● The productive capacity of the cooperative.

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). Write “Filed pursuant to

section 301.9100-2” on the amended return.

Once made, the election cannot be revoked.

● The cooperative designates the apportionment in a

written notice mailed to its patrons during the payment

period described in section 1382(d).

The cooperative must also provide to its patrons the

following additional information: