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

Sold or Used

Type of Fuel

1

2 $.51*

Alcohol 190 proof or greater and alcohol 190 proof or greater 

in fuel mixtures sold or used before 2009 

3

3

2

Alcohol 190 proof or greater and alcohol 190 proof or greater 

in fuel mixtures sold or used after 2008 

13 13

Alcohol and cellulosic biofuel fuels credit from a partnership, S corporation, cooperative, estate, 

or trust (see instructions) 

14

14

Add lines 8 and 9. Partnerships and S corporations, report this amount on Schedule K. All others, 

go to line 11 

15

15

Alcohol and cellulosic biofuel fuels credit included on line 10 from passive activities (see

instructions) 

Subtract line 11 from line 10 

16

16

17

Alcohol and cellulosic biofuel fuels credit allowed for 2008 from a passive activity (see instructions)

17

Carryforward from 2007 of the alcohol fuel credit and carryback from 2009 of the alcohol and

cellulosic biofuel fuels credit (see instructions) 

Add lines 12 through 14. Cooperatives, estates, and trusts, go to line 16. All others, report this

amount on Form 3800, line 29c 

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

1 $.10 Qualified ethanol fuel production (see instructions for

election)

Cat. No. 13605J Form 6478 (2008)

Alcohol and Cellulosic Biofuel Fuels Credit

© Attach to your tax return.

For Paperwork Reduction Act Notice, see instructions.

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.

$.45*

12 12

Add the amounts in column (c) on lines 1 through 7. Include this amount in your income for 2008 

(see instructions) 

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

instructions) 

Cooperatives, estates, and trusts. Subtract line 16 from line 15. Report this amount on Form

3800, line 29c 

2008

4 $.3778*

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 2009 

5

5

4

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 after 2008 $.3333*

6 $.41**

7

7

6

8

9

9

8

10

11

11

10

Qualified cellulosic biofuel produced, and sold or used, after 

2008 that is alcohol (see instructions for election)

Qualified cellulosic biofuel produced, and sold or used, after 

2008 that is not alcohol (see instructions for election) 

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

$1.01

General Instructions

The Food, Conservation, and Energy Act of 2008 made

the following changes.

● The Act lowered the credit rate for ethanol sold or

used after 2008.

● The Act added the cellulosic biofuel producer credit

for fuel produced, and sold or used, after 2008.

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,

Section references are to the Internal Revenue Code

unless otherwise noted. The Energy Improvement and Extension Act of 2008

added a clarification that credits for fuel are designed

to provide an incentive for U.S. production.

What’s New

● The Act lowered the percentage of denaturants

included in the volume of alcohol used to figure the

credit for fuel sold or used after 2008.
Form 6478 (2008) Page 2

● 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.

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.

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—

● 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.

Qualified Cellulosic Biofuel Fuel Production

This is cellulosic biofuel produced, and sold or used,

after 2008, and during the tax year:

1. Is sold by the producer to another person—

● 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),

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

or

● Who sells the cellulosic biofuel at retail to another

person and puts the cellulosic biofuel in the retail

buyer’s fuel tank;

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

described in 1 above.

Qualified cellulosic fuel 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.

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

5% (2% for fuel sold or used after 2008—see Notice

2009-6 in I.R.B. 2009-3 for details) of the volume of the

alcohol and denaturant combined.

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.

CAUTION

● 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 (for credits claimed on returns

filed after May 14, 2008).

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.

● 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).

Cellulosic Biofuel

Cellulosic biofuel, for credit purposes, is any liquid fuel

produced, and sold or used, after 2008, which:

● Is produced from any lignocellulosic or

hemicellulosic matter that is available on a renewable

or recurring basis, and

● Alcohol credit,
Form 6478 (2008) Page 3

Recapture of Credit

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:

● 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 or Qualified

Cellulosic Biofuel Production.

Specific Instructions

Note. We have shown in column (b) of lines 2 through

5 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

through 5.

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.

Important: The amount of the credit determined for

lines 2 through 5 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).

Lines 2 and 3

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). For alcohol other than ethanol, the

rate is 60 cents per gallon.

Lines 4 and 5

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). For alcohol other than ethanol, the rate

is 45 cents per gallon.

Line 6

Enter the number of gallons of cellulosic biofuel that is

alcohol produced, and sold or used, after 2008 that

meet the conditions listed under Qualified Cellulosic

Biofuel Production on page 2. For ethanol, the rate is

46 cents per gallon.

Line 7

Enter the number of gallons of cellulosic biofuel that is

not alcohol produced, and sold or used, after 2008

that meet the conditions listed under Qualified

Cellulosic Biofuel Production on page 2. Multiply by

the rate of $1.01 per gallon.

Line 8

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

7, 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.

Line 9

Enter the amount of credit that was allocated to you as

a partner, shareholder, patron, 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.

Report the tax on Form 720.

Use lines 1 through 7 to figure any alcohol and

cellulosic biofuel fuels credit from your own trade or

business.

Line 10

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.

Line 11

Enter the amount included on line 10 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 13

Enter the passive activity credit allowed for the 2008

alcohol and cellulosic biofuel fuels credit from Form

8582-CR or Form 8810.

Registration

All producers and importers of alcohol with a proof of

at least 190 and all producers of cellulosic biofuel 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 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.
Form 6478 (2008) Page 4

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.

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.

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 8 hrs., 7 mins.

Learning about the law or the form 35 mins.

Preparing and sending the form to the IRS 45

mins.

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.

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.

Line 14

Carryforward. Use line 14 to show any carryforward of

the credit from 2007. For carryforwards of the credit

from years prior to 2005, show such carryforwards on

line 6 of Form 3800.

Carryback. Use line 14 to show any carryback if you

amend your 2008 return to carry back an unused credit

from 2009.

Line 16

Estate or trust. Allocate the alcohol and cellulosic

biofuel fuels credit on line 15 between the estate or

trust and the beneficiaries in the same proportion as

income was allocated and enter the beneficiaries’

share on line 16.

● 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

additional information: