6478 Credit for Alcohol Used as Fuel oweNe 2865029)
Form
> Attach to your return, 1990
Department of the Treasury Attachment
Internal Revenue Service > For Paperwork Reduction Act Notice, see instructions. Sequence No. 83
Name(s) as shown on return Identifying number
7 @) 0) ©
Type of Alcohol Fuel Number of Gallons Credit or Column (a) x Column (b)
Sold or Used Tax Rate
1 Straight alcohol and alcohol mixtures:
@ 190 proof or greater (in gallons) la 60
b Less than 190 proof but at least 150 proof (ngs 1b AS po
2 Add lines 1a and bin both columns. . re a
3 Other fuels blended with the alcohol above . rr a
4 Total gallons of fuel—Add lines 2 and3(column(a)) . . . . 4
5 Enter the number of gallons that contain less than 10% of 190-proof
alcohol or that are exempt from excise taxes because of exemption,
credit, or refund provisions other than the alcohol fuel credit . §
6 Subtract line 5fromline4 . . . re on:
7 Break down line 6 into the number of gallons of:
Noncommercial aviation fuel—
a Alcohol or alcoho! blended with aviation fuels Za -14(.134*)
b Alcohol blended with gasoline 7b -09(.064*)
All other fuel on line 6—
¢ Less than 85% alcohol blended with gasoline, diesel fuel, or special motor fuel |_Ze -06(.054*)
d 85% or more alcohol: (i) Methanol/ethanol produced from other
than petroleum or natural gas (see instructions) 7d(i) 06%. 0605/.0545*)
(ii) Alcoho! produced from natural gas 2... Lai .045(.07*)
8 Add lines 7a through 7d, column(c). . . . -L8
9 Credit less excise tax benefit. Subtract line 8 from line 2. Note: Include this amount in ‘your income for 1990 . - 9
10 Flow-through alcohol fuel credit(s) from a partnership, S corporation, estate ortrust . . . . . . (10
11 Current year credit for alcohol used as fuel. AddlinesQand10_. . . . . . . . LD

* Rate applies effective December 1, 1990.

See General instruction B, Who Must File Form 3800, General Business Credit.

12 a Individuals—Enter amount from Form 1040, line 40 .
b Corporations—Enter amount from Form 1120, Schedule J, line 3 (or Form 1120. A, Partl, line D . . ple
¢ Other filers—Enter regular tax before credits from your return Se

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

a Credit for child and dependent care expenses (Form2441). . . . [13a

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

¢ Foreign tax credit (Form 1116o0rForm1118). . .... . . ([13¢

d Possessions tax credit (Form 5735) re 2 2

e Mortgage interest credit (Form8396) ......... . (i3e

f Credit for fuel from anonconventionalsource. . . . . . . . (23f

g Orphan drug credit (Form6765) . . . . (13g.

h Total credits that reduce regular tax before the alcohol fuel credit. ‘Add lines 13a through 13g . . . {13h
14 Net regular tax—Subtract line 13h from line 12 Se 14
15 Tentative minimum tax:

a Individuals—Enter amount from Form 6251, line17. . .

b Corporations—Enter amount from Form 4626, line 13 . | 15

c Estates and Trusts—Enter amount from Form 8656, line 37
16 Net income tax:

a Individuals—Add line 14 above and line 19 of Form 6251. Enter the total .

b Corporations—Add line 14 above and line 15 of Form 4626. Enter the total 16

¢ Other filers—See Instructions . bo :
17 If line 14 is more than $25,000, enter 25%: of excess ; (see instructions) a 17
18 Subtract line 15 or line 17, whichever is greater, from line 16. Enter the result. If less than zero, enter zero . | 18
19 Alcohol fuel credit allowed for current year. Enter the smaller of line 11 or line 18. This is your

General Business Credit for 1990. Enter here and on Form 1040, line 44; Form 1120, Schedule J,

line 4e; Form 1120-A, Part |, line 2a; or the appropriate line of other income taxreturns . . . 19



Form 6478 (1990)

Page 2

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 - Shrs., 22 min,
Learning about the

law or the form - 46min.
Preparing the form . Lhr., 52 min.
Copying, assembling, and
sending the form to 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 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.
Item You Should Note. —The Revenue
Reconciliation Act of 1990 revised the
excise tax exemption amounts for certain
fuels effective December 1, 1990: The
revised rates are shown in parentheses in
column (b) for lines 7a through 7d.

General Instructions

A. Purpose of Form.—Use Form 6478 to
figure your credit for alcohol used as fuel.
The credit is allowed for sale or use of
straight alcohol fuel and qualified alcohol
mixtures.

You may claim or elect not to claim the
alcohol fuel credit at any time within three
years from the due date of the return on
either an original or an amended return
(determined without regard to extensions).

B. Who Must File Form 3800, General
Business Credit.—The general business
credit consists of 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), and disabled
access credit (Form 8826). If you have
more than one of these credits for 1990, a
carryback or carryforward of any of these
credits, or a general business credit from a
passive activity, do not complete lines 12
through 19. Instead, attach the appropriate
credit forms and summarize them on Form
3800, General Business Credit. If you have
only a 1990 credit for alcohol used as fuel
and the credit is not from a passive activity,
you do not have to file Form 3800 this year.

C. Alcohol Fuel and Amount of Credit.—

1. Straight Alcohol.—The credit is 60 cents
a gallon for alcohol that is at least 190
proof. The alcohol must be:
(a) used by the taxpayer as a fuel ina
trade or business, or
(b) sold by the taxpayer at retail to
another person and put in the fuel
tank of that person's vehicle.
The alcohol cannot be in a mixture with
gasoline, diesel or special motor fue!
(except for a denaturant).

2. Alcohol Mixture.—The credit is 60 cents
a gallon for alcohol that is at least 190 proof.
The alcohol must be used to produce a
qualified mixture. A qualified mixture
combines alcohol with gasoline, diesel, or
special motor fuel and the producer of the
mixture either:

(a) uses it as fuel, or

(b) 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 ina
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.

3. Lower-Proof Alcoho!.—The credit is 45
cents a gallon for alcohol that is less than
190 proof, but at least 150 proof.

D. Definitions and Special Rules.—

1. Alcohol.—Alcoho! includes methanol and
ethanol but does not include:
(a) alcohol produced from petroleum,
natural gas, or coal (including peat), or
(b) 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.
2. Tax If Alcohol Is Not Used As Fuel.—If
you determined an alcohol fuel credit and
later: (a) used the alcohol or mixture other
than as a fuel, (b) separated the alcohol
from a mixture, or (c) mixed alcohol on
which a credit was allowable on a retail sale,
then you must pay a tax of 60 cents for
each gallon of alcohol or alcohol ina
mixture. If the alcohol is less than 190 proof
(but at least 150 proof), the taxis 45 cents
a galton. Report the tax on Form 720,
Quarterly Federal Excise Tax Return.

Specific Instructions

Use lines 1 through 9 to figure any alcohol
fuel credit from your own trade or business.
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).

S$ Corporations, Partnerships, Estates,
and Trusts. —F igure the total credit on
lines 1 through 11. The line 11 credit is
then allocated among the individual
shareholders, partners, and beneficiaries in
the same way that income and loss are
divided.

Line 5.—Examples of fuels exempted from
excise tax includes fuel

@ Used ona farm for farming purposes.

e Used in off-highway business use.

e Used as fuel by a state, any political
subdivision of a state, or the District of
Columbia.

e Used as fuel by a nonprofit educational
organization.

e Used in an intercity, local, or school bus.
e Used for certain helicopter uses.

Line 6.—This is the number of gallons of
fuel that benefited from either an
exemption from the excise tax or a reduced

gen -

rate of the excise tax because the fuel
contained alcohol.

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 1a and 1b must be reduced to
take into account any benefit provided by
that exemption or reduced rate.

The revised rates, effective December 1,
1990, are shown in column (b) in
parentheses
Lines 7a and 7b.—Noncommercial
aviation is use of an aircraft other than ina
business of transporting persons or property
for pay.

Lines 7c and 7d.—This includes all other
fuels that received an excise tax benefit
because the fuels contained alcohol.

The benefit for qualified methanol
produced from other than petroleum or
natural gas is $.0605 per gallon effective
December 1, 1990; for qualified ethanol it
is $.0545 per gallon.

Line 9.—Include this amount in income,
under “Other income" on the appropriate
line of your tax return even if you cannot
use all the credit because of limitations
based on the amount of your tax.

Line 10.—Enter the amount of credit that
was aliocated to you as a shareholder,
partner, or beneficiary.

Line 11.—If you have more than one of the
credits listed in General Instruction B or an
alcohol fuel credit 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’
share 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.

If you cannot use part of the credit
because of the tax liability limitations, you
may carry it back 3 years, then forward. The
credit may not be carried to taxable years
beginning after December 31, 1994.

Line 16c—Other filers.—Enter the sum of
line 14 and your alternative minimum tax
from whichever alternative minimum tax
form you file.

Line 17.— See section 38(c)(3) for special
rules for married couples filing separate
returns, for controlled corporate groups, and
for estates and trusts.

See section 383 for the limitation on the
amount of any excess general business tax
credits of a loss corporation for any tax year
ending after a post-1986 ownership change
that may be used in a post-change year.
Line 19.— If the alcohol fuel credit is not
listed separately on your 1990 return,
include the credit on the “other credits” or
“total credits” line; then, write “ALCOHOL
FUEL CREDIT” and the amount on the
dotted line to the left of the total amount.

1990 0 - 265-376