Form 6478

Department of the Treasury 

Internal Revenue Service

Alcohol and Cellulosic Biofuel Fuels Credit

▶ Attach to your tax return.

OMB No. 1545-0231

2011

Attachment 

Sequence No. 83

Name(s) shown on return Identifying number

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

Form 4136.

Type of Fuel

(a) 

Number of Gallons 

Sold or Used

(b) 

Rate

(c) 

Column (a) x Column (b)

1 Qualified ethanol fuel production for fuel sold or used before 

2012 (see instructions for election) . . . . . . . . . 1 

2 Alcohol 190 proof or greater and alcohol 190 proof or greater 

in fuel mixtures sold or used before 2012 . . . . . . . 2 

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

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

or used before 2012 . . . . . . . . . . . . . . 3 

4 Qualified cellulosic biofuel production for fuel sold or used 

before 2012 that is alcohol (see instructions for election) . . 4 

5 Qualified cellulosic biofuel production for fuel sold or used 

before 2012 that is not alcohol (see instructions for election) . 5 

 6 Qualified cellulosic biofuel production for fuel sold or used 

after 2011 (see instructions for election) . . . . . . . . 6

7 Add the amounts in column (c) on lines 1 through 6. Include this amount in your income for 2011 

and, if you reported an amount on lines 4, 5, or 6 above, 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

*Only the rate for ethanol is shown. See instructions for the rate for alcohol other than ethanol.

**Only the rate for alcohol other than ethanol is shown. See instructions for the rate for ethanol.

General Instructions

Section references are to the Internal Revenue Code unless 

otherwise noted.

What's New

• The alcohol mixture, alcohol, and small ethanol producer 

credits expired for fuels sold or used after 2011.

• The carryforwards, carrybacks, and passive activity 

limitations for this credit are no longer reported on this form; 

instead, they must be reported on Form 3800, General 

Business Credit.

Future developments. The IRS has created a page on 

IRS.gov for information about Form 6478 and its instructions 

at www.irs.gov/form6478. Information about any future 

developments affecting Form 6478 (such as legislation 

enacted after we release it) will be posted on that page. 

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:

• Alcohol mixture credit,

• Alcohol credit,

• Small ethanol producer credit, and

• Cellulosic 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. 

▲!

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.

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.

For Paperwork Reduction Act Notice, see instructions. Cat. No. 13605J Form 6478 (2011)
Form 6478 (2011) Page 2 

Definitions and Special Rules

Qualified Ethanol Fuel Production

This is ethanol produced by an eligible small ethanol 

producer (defined below) which during the tax year:

1. Does not exceed 15 million gallons (not counting any 

qualified cellulosic biofuel production);

2. 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

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

described in (2) above.

Eligible Small Ethanol Producer

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.

Alcohol

Alcohol, for credit purposes, includes ethanol and methanol 

but does not include the following.

• 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.

• 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 2% (see Notice 2009-6 in 

I.R.B. 2009-3 for details) of the volume of the alcohol and 

denaturant combined.

• Alcohol produced outside the United States or a U.S. 

possession for use as a fuel outside the United States or a 

U.S. possession.

The alcohol must not be a mixture with gasoline or a 

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

alcohol which during the tax year you:

• 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.

 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.

Alcohol Fuel Mixture

The alcohol must be used to make a qualified mixture. A 

qualified alcohol mixture combines alcohol with gasoline or a 

special fuel. The producer of the mixture either:

• Used it as fuel, or

• Sold 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.

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.

Registration

All producers and importers of alcohol with a proof of at 

least 190 and all producers of cellulosic biofuel must be 

registered by the IRS. See Form 637, Application for 

Registration.
Form 6478 (2011) Page 3 

Coordination With Excise Tax Credit

Only one credit may be taken with respect to any gallon of 

alcohol in a mixture reported on Form 6478. 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.

Recapture of Credit

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

biofuel (or the alcohol or cellulosic biofuel in the mixture) at 

the rate you used to figure the credit if you:

• Separate the alcohol from the mixture,

• Use the alcohol 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 or Qualified Cellulosic 

Biofuel Production, earlier.

Report the tax on Form 720.

Specific Instructions

Note. Column (b) of lines 2 and 3 shows 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. Column (b) of line 4 shows the rate for alcohol 

other than ethanol only. If you have a credit for ethanol, enter 

in column (b) the rate shown in the instructions for line 4.

Line 1

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

gallons sold or used before 2012, that meet the conditions 

listed under Qualified Ethanol Fuel Production, earlier.

Multiply by the rate of 10 cents per gallon.

Important: The amount of the credit determined for lines 2 

and 3 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).

Line 2 

Enter the number of gallons of alcohol 190 proof or greater 

and alcohol 190 proof or greater in qualified mixtures 

(mixtures of alcohol and gasoline or alcohol and special 

fuels) sold or used before 2012. For alcohol other than 

ethanol, the rate is 60 cents per gallon.

Line 3

Enter the number of gallons of alcohol less than 190 proof 

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

least 150 proof in qualified mixtures (mixtures of alcohol and 

gasoline or alcohol and special fuels) sold or used before 

2012. For alcohol other than ethanol, the rate is 45 cents per 

gallon.

Line 4

Enter the number of gallons of cellulosic biofuel that is 

alcohol sold or used before 2012 that meets the conditions 

listed under Qualified Cellulosic Biofuel Production, earlier. 

For ethanol, the rate is 46 cents per gallon.

Line 5

Enter the number of gallons of cellulosic biofuel that is not 

alcohol sold or used before 2012 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 cellulosic biofuel sold or used 

after 2011 that meets the conditions listed under Qualified

Cellulosic Biofuel Production, earlier. Multiply by the rate of 

$1.01 per gallon.

Line 7

The total credit shown in column (c) on lines 1 through 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 biofuel producer 

credit on lines 4, 5, or 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 

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.

Line 9

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 at the entity level for the 

small ethanol producer credit, and

• The productive capacity of the entity.
Form 6478 (2011) Page 4 

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.

If the credit includes the small ethanol producer credit, the 

estate or trust must provide to its beneficiaries 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.

Cooperative election to allocate the small ethanol 

producer credit or the cellulosic biofuel producer credit 

to patrons. A cooperative described in section 1381(a) can 

elect to allocate any part of the small ethanol producer credit 

or the cellulosic 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 

producers 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.

• The cooperative designates the apportionment in a written 

notice mailed to its patrons during the payment period 

described in section 1382(d).

A cooperative electing to allocate any part of the small 

ethanol producer credit must also provide to its patrons the 

following additional information:

• 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.

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.