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 Alcohol Fuel

1

Straight alcohol and alcohol mixtures:

2a $.52

b

190 proof or greater (in gallons)

2b $.3852

3

Less than 190 proof but at least 150 proof (in gallons)

3

2

Add lines 1, 2a, and 2b in both columns

4 Other fuels blended with the alcohol on lines 2a and 2b 4

5a Total gallons of fuel. Add lines 3 and 4 (column (a)) 5a

Total gallons containing less than 5.7% of 190-proof alcohol

or that are exempt from excise taxes (see instructions)

b

5b

6 Subtract line 5b from line 5a 6

7 Break down line 6 into the number of gallons of:

7a

a

$.132

b 7b

Aviation fuel for use in noncommercial aviation containing at

least 10% alcohol

(see instructions)

7c

Gasohol (and other fuels) containing less than 85% alcohol (see instructions)

c Special motor fuel containing 85% or more alcohol (see instructions) $.0525

8 Add lines 7a through 7c, column (c) 8

9 Subtract line 8 from line 3. Include this amount in your income for 2003 9

10 Alcohol fuel credit(s) from a partnership, S corporation, estate, or trust (see instructions) 10

11 Current year credit. Add lines 9 and 10 11

Only the rate for ethanol is shown. See instructions for lines 2 and 7 for rates for alcohol other than ethanol.

See Who must file Form 3800 to find out if you complete the lines below or file Form 3800.

1 $.10

a

Qualified ethanol fuel production (in gallons)

Cat. No. 13605J

*

Form 6478 (2003)

Credit for Alcohol Used as Fuel

 Attach to your tax return.

For Paperwork Reduction Act Notice, see page 4.

*

● Individuals. Enter the amount from Form 1040, line 41

12

Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A,

Part I, line 1; or the applicable line of your return

●

●

15a 15a

Credit for child and dependent care expenses (Form 2441, line 11) 15b

Credit for the elderly or the disabled (Schedule R (Form 1040), line 24)

b

15d

Foreign tax credit

d

15f f

Possessions tax credit (Form 5735, line 17 or 27)

15g g

h 15h

Credit for fuel from a nonconventional source

i

Qualified electric vehicle credit (Form 8834, line 20)

Add lines 15a through 15l 15m

Net income tax. Subtract line 15m from line 14. If zero, skip lines 17 through 20 and enter -0- on line 21 16

13 Alternative minimum tax (see instructions) 13

16

17 Net regular tax. Subtract line 15m from line 12. If zero or less, enter -0- 17

19 Tentative minimum tax (see instructions)

Subtract line 20 from line 16. If zero or less, enter -0-

20 20

Credit allowed for the current year. Enter the smaller of line 11 or line 21 here and on Form 1040, line

52; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2a; Form 1041, Schedule G, line 2c; or the

applicable line of your return. If line 21 is smaller than line 11, see instructions 22

Mortgage interest credit (Form 8396, line 11)

c 15c

12 Regular tax before credits:

14 Add lines 12 and 13 14

18

Enter the greater of line 18 or line 19

18

19

j

Adoption credit (Form 8839, line 18)

15i

15j

District of Columbia first-time homebuyer credit (Form 8859, line 11)

k

l

m

Child tax credit (Form 1040, line 49)

Education credits (Form 8863, line 18)

15k

15l

Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a

and 1b, or the amount from the applicable line of your return

Enter 25% (.25) of the excess, if any, of line 17 over $25,000 (see instructions)

21 21



22

e Credit for qualified retirement savings contributions (Form 8880, line 14) 15e

2003
Form 6478 (2003) 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.

● 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.

● Used it as fuel or

● Sold it as fuel to another person.

Straight Alcohol

● 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

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 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

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

described in 1 above.

Special Fuel

Noncommercial Aviation

Recapture of Credit

● Separate the alcohol from the mixture,

● Use the mixture other than as a fuel,

● Mix straight alcohol on which the credit was allowed for

the retail sale,

● Use the straight 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, Quarterly Federal Excise Tax

Return.

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 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.

Skip lines 1 through 9 if you are claiming only a credit that

was allocated to you from a pass-through entity (that is,

S corporation, partnership, estate, or trust).

Specific Instructions

Use lines 1 through 9 to figure any alcohol fuel credit from

your own trade or business.

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 2a, 2b, and 7a through 7c.

Line 1

If the line 11 credit includes any small ethanol producer

credit (line 1), you must separately state to each shareholder,

partner (except a partner in an electing large partnership), or

beneficiary the number of gallons on which the credit was

figured and your productive capacity (in gallons) for alcohol.

S Corporations, Partnerships, Estates, and Trusts

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 30 million gallons or less.

This capacity includes alcohol made from petroleum, natural

gas, coal, peat, and alcohol of less than 150 proof.

This is any liquid fuel other than gasoline that is suitable for

use or is used in an internal combustion engine.

This is the use of an aircraft other than in a business of

transporting persons or property for pay.

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:

Figure the total credit on lines 1 through 11. Then, allocate

the line 11 credit to each shareholder, partner, and

beneficiary in the same way that income and loss are

divided. Electing large partnerships include this credit in

“general credits.”

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

gallons, that meet the conditions listed above under

Qualified Ethanol Fuel Production. Multiply by the rate of

10 cents per gallon.

Additional Information

See Pub. 378, Fuel Tax Credits and Refunds.

Note: The credit rates applicable to lines 2(a), 2(b), 7(a), and

7(c) have decreased for sales or uses in 2003 from the 2002

rates.

Line 2a

Enter the number of gallons of 190 proof or greater alcohol

and multiply by the rate. For alcohol other than from ethanol,

the rate is 60 cents per gallon.
Line 7

Line 7a. Enter in column (a) the number of gallons of alcohol

(or alcohol blended with aviation fuel other than gasoline)

sold for use, or used, as fuel in an aircraft in noncommercial

aviation if you received an excise tax benefit because the

mixture contained at least 10% alcohol. If the alcohol did not

contain ethanol, the rate in column (b) is 14 cents.

Lines 7b and 7c. Use these lines for all other fuels (including

gasohol) if you received an excise tax benefit because the

fuels contained alcohol.

Line 7b. Enter in column (a) the number of gallons of fuel

that is a mixture containing less than 85% alcohol.

Line 7c. Enter in column (a) the number of gallons of

special motor fuel that contain 85% or more alcohol. If the

alcohol did not contain ethanol, the rate in column (b) is 6.05

cents.

Line 9

Line 11

Form 6478 (2003) Page 3

The rates are based on the percentage of alcohol in the

mixture.

Product

Rate

Ethanol

Other than

ethanol

10% gasohol

7.7% gasohol

5.7% gasohol

$.052

$.04004

$.02964

$.06

$.0462

$.0342

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

unless you must file Form 3800, General Business Credit.

● A carryback or carryforward of any of those credits.

● More than one credit included in the general business

credit (other than a credit from Form 8844 or 8884), or

● A credit for alcohol used as fuel from a passive activity,

Who must file Form 3800. You must file Form 3800 if you

have:

Line 13

● Individuals: Form 6251, line 35.

● Corporations: Form 4626, line 14.

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

Line 4

Line 5b

Line 2b

Enter the number of gallons included on line 5a that contain

less than 5.7% of 190-proof or greater alcohol or that are

exempt from excise taxes. The fuel can be exempt because

of specific exemption, credit, or refund provisions other than

the alcohol fuel credit.

Enter the number of gallons of other fuels blended with the

alcohol shown on lines 2a and 2b. Other fuels include

gasoline and special fuel.

Enter the number of gallons of alcohol that is less than 190

proof but at least 150 proof and multiply by the rate. For

alcohol other than from ethanol, the rate is 45 cents per

gallon.

If you sold or used alcohol or an alcohol mixture as fuel, you

may have been entitled to an exemption, credit, refund, or a

reduced rate of excise tax. The alcohol fuel credit must be

reduced to take into account any of these benefits.

Include this amount 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 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.

For an estate or trust, the credit on line 11 is allocated

between the estate or trust and the beneficiaries in

proportion to the income allocable to each. In the margin to

the right of line 11, the estate or trust should enter its part of

the total credit. Label it “1041 Portion” and use this amount

in lines 12 through 22 (or Form 3800) to figure the credit to

claim on Form 1041. Also, enter and identify the

beneficiaries’ share of the credit to the right of line 11 and

attach a schedule showing how the total credit was divided.

Enter the alternative minimum tax (AMT) from the following

line of the appropriate form or schedule.

See the instructions for Form 3800 to find out which

credits are included in the general business credit.

Line 19

Although you may not owe AMT, you generally must still

compute the tentative minimum tax (TMT) to figure your

credit. For a small corporation exempt from the AMT under

section 55(e), enter zero. Otherwise, complete and attach the

applicable AMT form or schedule. Enter on line 19 the TMT

from the line shown below.

Line 18

See section 38(c)(4) 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.

Line 22

● Individuals: Form 6251, line 33.

● Corporations: Form 4626, line 12.

● Estates and trusts: Form 1041, Schedule I, line 54.

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

limit (line 21 is smaller than line 11), carry the unused credit

back 1 year then forward up to 20 years. See the instructions

for Form 3800 for details.

Line 10

If your credit from a pass-through entity includes the small

ethanol producer credit, the pass-through entity must tell you

the amount of the small producer credit included in the

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

shareholder, partner, or beneficiary.

pass-through credit, the number of gallons for which the

entity claimed the small ethanol producer credit, and the

productive capacity for alcohol. You, as a shareholder,

partner, or beneficiary, are subject to the 15-million-gallon

limitation for line 1 and the 30-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.
Form 6478 (2003) 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.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

average time is:

Recordkeeping 12 hr., 12 min.

Learning about the

law or the form 18 min.

Preparing and sending the form

to the IRS 30 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.