Form 6478

Department of the Treasury 

Internal Revenue Service

Alcohol and Cellulosic Biofuel Fuels Credit 

(Including Second Generation Biofuel)

▶ Attach to your tax return.

▶ Information about Form 6478 and its instructions is at www.irs.gov/form6478.

OMB No. 1545-0231

2012

Attachment 

Sequence No. 83

Name(s) shown on return Identifying number

Reserved

Type of Fuel

(a) 

Number of Gallons 

Sold or Used

(b) 

Rate

(c) 

Column (a) x Column (b)

1 Reserved . . . . . . . . . . . . . . . . . . 1 

2 Reserved . . . . . . . . . . . . . . . . . . 2 

3 Reserved . . . . . . . . . . . . . . . . . . 3 

4 Reserved . . . . . . . . . . . . . . . . . . 4 

5 Qualified cellulosic biofuel production for fuel sold or used 

before January 3, 2013 (see instructions for election) . . . 5 

 6 Qualified second generation biofuel production for fuel sold or 

used after January 2, 2013 (see instructions for election) . . 6

7 Add the amounts in column (c) on lines 5 and 6. Include this amount in your income for 2012, and 

enter your IRS registration number (see instructions) . . . . 7

8 Alcohol and cellulosic biofuel fuels credit from partnerships, S corporations, cooperatives, estates, 

and trusts (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 8

9 Add lines 7 and 8. Cooperatives, estates, and trusts, go to line 10. Partnerships and S 

corporations, stop here and report this amount on Schedule K. All others, stop here and report 

this amount on Form 3800, line 4c . . . . . . . . . . . . . . . . . . . . . 9

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

instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11 Cooperatives, estates, and trusts, subtract line 10 from line 9. Report this amount on Form 3800, 

line 4c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Reserved

For Paperwork Reduction Act Notice, see instructions. Cat. No. 13605J Form 6478 (2012)
Form 6478 (2012) Page 2 

General Instructions

Section references are to the Internal Revenue Code 

unless otherwise noted.

Future Developments

For the latest information about developments related to 

Form 6478 and its instructions, such as legislation 

enacted after they were published, go to 

www.irs.gov/form6478.

What's New

• The alcohol mixture, alcohol, and small ethanol 

producer credits expired for fuels sold or used after 2011.

• The cellulosic biofuel producer credit was extended to 

cover fuel sold or used through January 2, 2013.

• A second generation biofuel producer credit adds 

algae-based fuel and covers fuel sold or used after 

January 2, 2013, and before January 1, 2014.

Purpose of Form

Use Form 6478 to figure your alcohol and cellulosic 

biofuel fuels credit. You claim the credit for the tax year in 

which the sale or use occurs. This credit consists of the:

• Cellulosic biofuel producer credit, and 

• Second generation biofuel producer credit.

 You may claim or elect not to claim the alcohol and 

cellulosic biofuel fuels 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. 

Taxpayers, other than partnerships, S corporations, 

cooperatives, estates, or trusts, whose only source of this 

credit is from those pass-through entities, are not 

required to complete or file this form. Instead, they can 

report this credit directly on Form 3800.

Qualified Cellulosic Biofuel Production

This is cellulosic biofuel which during the tax year:

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 cellulosic biofuel 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 cellulosic biofuel at retail to another 

person and puts the cellulosic biofuel in the retail buyer’s 

fuel tank; or

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

described in (1) above.

Qualified cellulosic biofuel production does not include 

purchasing alcohol and increasing the proof of the 

alcohol through additional distillation. Nor does it include 

cellulosic biofuel that is not both produced in the United 

States or a U.S. possession and used as a fuel in the 

United States or a U.S. possession. 

A qualified cellulosic biofuel mixture combines 

cellulosic biofuel with gasoline or a special fuel. The 

producer of the mixture either:

• Used it as a fuel, or

• Sold it as fuel to another person.

Cellulosic Biofuel

Generally, cellulosic biofuel, for credit purposes, is any 

liquid fuel, which:

• Is produced from any lignocellulosic or hemicellulosic 

matter that is available on a renewable or recurring basis, 

• Meets the registration requirements for fuels and fuel 

additives established by the Environmental Protection 

Agency under section 211 of the Clean Air Act (42 U.S.C. 

7545), and

• Is not alcohol of less than 150 proof. In figuring the 

proof of any alcohol, disregard any added denaturants 

(additives that make the alcohol unfit for human 

consumption).

However, cellulosic biofuel does not include any fuel if:

• More than 4% of the fuel (determined by weight) is any 

combination of water and sediment, 

• The ash content of the fuel is more than 1% 

(determined by weight), or

• The fuel has an acid number greater than 25.

Qualified Second Generation Biofuel 

Production

This is second generation biofuel which during the tax 

year:

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 second generation biofuel 

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 second generation biofuel at retail to 

another person and puts the second generation biofuel in 

the retail buyer’s fuel tank; or

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

described in (1) above.

Qualified second generation biofuel production does 

not include purchasing alcohol and increasing the proof 

of the alcohol through additional distillation. Nor does it 

include second generation biofuel that is not both 

produced in the United States or a U.S. possession and 

used as a fuel in the United States or a U.S. possession. 

A qualified second generation biofuel mixture combines 

second generation biofuel with gasoline or a special fuel. 

The producer of the mixture either:

• Used it as a fuel, or

• Sold it as fuel to another person.

Second Generation Biofuel

Generally, second generation biofuel, for credit purposes, 

is any liquid fuel, which:

• Is derived by, or from, qualified feedstocks,
Form 6478 (2012) Page 3 

• Meets the registration requirements for fuels and fuel 

additives established by the Environmental Protection 

Agency under section 211 of the Clean Air Act (42 U.S.C. 

7545), and

• Is not alcohol of less than 150 proof. In figuring the 

proof of any alcohol, disregard any added denaturants 

(additives that make the alcohol unfit for human 

consumption).

A qualified feedstock is:

• Any lignocellulosic or hemicellulosic matter that is 

available on a renewable or recurring basis, and

• Any cultivated algae, cyanobacteria, or lemna.

However, second generation biofuel does not include 

any fuel if:

• More than 4% of the fuel (determined by weight) is any 

combination of water and sediment,

• The ash content of the fuel is more than 1% 

(determined by weight), or

• The fuel has an acid number greater than 25.

Special rules for algae. For sales described in (1) under 

Qualified Second Generation Biofuel Production, earlier, 

second generation biofuel also includes certain liquid fuel, 

which:

• Is derived by, or from, any cultivated algae, 

cyanobacteria, or lemna, and

• Is not alcohol of less than 150 proof (disregard any 

added denaturants).

But only if this fuel is sold by the producer to another 

person for refining by such other person into a liquid fuel 

which will meet the registration requirements for fuels and 

fuel additives established by the Environmental Protection 

Agency under section 211 of the Clean Air Act (42 U.S.C. 

7545), and not include any fuel if:

• More than 4% of the fuel (determined by weight) is any 

combination of water and sediment,

• The ash content of the fuel is more than 1% 

(determined by weight), or

• The fuel has an acid number greater than 25.

Also, once this fuel is sold by the producer to another 

person for refining by such person into a fuel which will 

meet these requirements, neither the producer nor any 

other person can use such fuel (or any fuel derived from 

such fuel) to figure a second credit for qualified second 

generation biofuel production.

Registration

All producers of cellulosic or second generation biofuel 

must be registered with the IRS. See Form 637, 

Application for Registration.

Recapture of Credit

You must pay a tax on each gallon of cellulosic or second 

generation biofuel at the rate you used to figure the credit 

if you do not use the fuel for the purposes described 

under Qualified Cellulosic Biofuel Production or Qualified 

Second Generation Biofuel Production, earlier.

Report the tax on Form 720.

Specific Instructions

Lines 1 Through 4 

These lines are reserved for future use.

Line 5

Enter the number of gallons of cellulosic biofuel sold or 

used before January 3, 2013, that meets the conditions 

listed under Qualified Cellulosic Biofuel Production, 

earlier. Multiply by the rate of $1.01 per gallon.

Line 6

Enter the number of gallons of second generation biofuel 

sold or used after January 2, 2013, that meets the 

conditions listed under Qualified Second Generation 

Biofuel Production, earlier. Multiply by the rate of $1.01 

per gallon.

Line 7

The total credit shown in column (c) on lines 5 and 6 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 figuring 

AMT and must be subtracted when figuring your 

alternative minimum taxable income. Do this by including 

this amount on line 27 of Form 6251, line 23 of Schedule I 

(Form 1041), or line 2o of Form 4626.

Registration number. To claim a cellulosic or second 

generation biofuel producer credit on line 5 or line 6, you 

must be registered with the IRS. Enter your CB 

registration number in the space provided. For more 

information, see Form 637 and Publication 510, Excise 

Taxes.

Line 8

Enter the amount of credit that was allocated to you as a 

partner, shareholder, patron of a cooperative, or 

beneficiary.

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 production limitation and the 60-milliongallon 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.

Line 10

Estate or trust. Allocate the alcohol and cellulosic biofuel 

fuels credit on line 9 between the estate or trust and the 

beneficiaries in the same proportion as income was 

allocated and enter the beneficiaries’ share on line 10.

If the estate or trust is subject to the passive activity 

rules, include on line 8 any alcohol and cellulosic biofuel 

fuels credits from passive activities disallowed for prior 

years and carried forward to this year. Complete Form 

8582-CR, Passive Activity Credit Limitations, to determine 

the allowed credit that must be allocated between the 

estate or trust and the beneficiaries. For details, see the 

Instructions for Form 8582-CR.
Form 6478 (2012) Page 4 

Cooperative election to allocate the cellulosic or 

second generation biofuel producer credit to patrons. 

A cooperative described in section 1381(a) can elect to 

allocate any part of the cellulosic or second generation 

biofuel 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.

If the cooperative is subject to the passive activity rules, 

include on line 8 any small ethanol or cellulosic biofuel 

producer credits from passive activities disallowed for 

prior years and carried forward to this year. Complete 

Form 8810, Corporate Passive Activity Loss and Credit 

Limitations, to determine the allowed producer credits 

that can be allocated to patrons. For details, see the 

Instructions for Form 8810.

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, and

• The cooperative designates the apportionment in a 

written notice mailed to its patrons during the payment 

period described in section 1382(d).

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.

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 . . . . . . . . . . 4 hr., 32 min.

Learning about the law or the form . . . . 53 min.

Preparing and sending 

the form to the IRS . . . . . . . . . . . .1 hr.

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.