Form 8864

Department of the Treasury 

Internal Revenue Service

Biodiesel and Renewable Diesel Fuels Credit

▶ Attach to your tax return.

OMB No. 1545-1924

2010

Attachment 

Sequence No. 141

Name(s) shown on return Identifying number

Caution. You cannot claim any amounts on Form 8864 that you claimed (or will claim) on Form 720 (Schedule C), Form 8849, or 

Form 4136.

Claimant has a certificate from the producer or importer of biodiesel or renewable diesel reported on lines 1 through 6 below and, if 

applicable, claimant also has a statement from the reseller. Claimant has no reason to believe that the information in the certificate or 

statement is false. Claimant may need to attach a copy of the certificate and statement. See Certification below.

Type of Fuel

(a) 

Number of Gallons 

Sold or Used

(b) 

Rate

(c) 

Column (a) x Column (b)

1 Biodiesel (other than agri-biodiesel) . . . . . . . . . 1 

2 Agri-biodiesel . . . . . . . . . . . . . . . . 2

3 Renewable diesel . . . . . . . . . . . . . . . 3 

4 Biodiesel (other than agri-biodiesel) included in a biodiesel 

mixture . . . . . . . . . . . . . . . . . . 4

5 Agri-biodiesel included in a biodiesel mixture . . . . . . 5

6 Renewable diesel included in a renewable diesel mixture . . 6

7 Qualified agri-biodiesel production . . . . . . . . . 7 

8 Add lines 1 through 7. Include this amount in your income for 2010 (see instructions) . . . . . 8

9 Biodiesel and renewable diesel fuels credit from partnerships, S corporations, cooperatives, 

estates, and trusts (see instructions) . . . . . . . . . . . . . . . . . . . . . 9

10 Add lines 8 and 9. Cooperatives, estates, and trusts, go to line 11; partnerships and 

S corporations, report this amount on Schedule K; all others, report this amount on Form 3800, 

line 1l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 

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

instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 

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

line 1l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

General Instructions

Section references are to the Internal Revenue Code.

What’s New

• The biodiesel and renewable diesel fuels credit was 

extended to cover fuel sold or used in 2010 and 2011. 

Purpose of Form

Use Form 8864 to figure your biodiesel and renewable 

diesel fuels credit. Claim the credit for the tax year in 

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

• Biodiesel credit,

• Renewable diesel credit,

• Biodiesel mixture credit,

• Renewable diesel mixture credit, and

• Small agri-biodiesel producer credit.

Definitions and Special Rules

Certification

To claim a credit on lines 1 through 6, you generally must 

attach the Certificate for Biodiesel and, if applicable, 

Statement of Biodiesel Reseller, to Form 8864. To claim a 

credit on lines 3 or 6, the certificate must indicate at all 

appropriate locations that the fuel to which it relates is 

renewable diesel and state that the fuel meets the 

requirements discussed under Renewable Diesel on 

page 2. However, if the certificate or statement was 

attached to a previously filed claim, attach a statement 

with the following information.

• Certificate identification number.

• Total gallons of agri-biodiesel, biodiesel other than 

agri-biodiesel, or renewable diesel on the certificate.

• Total gallons claimed on Schedule 3 (Form 8849).

• Total gallons claimed on Schedule C (Form 720).

• Total gallons claimed on Form 4136.

See Notice 2005-62, 2005-35 I.R.B. 443, or Pub. 510, 

Excise Taxes, for the model certificate and statement.

For Paperwork Reduction Act Notice, see instructions. Cat. No. 25778F Form 8864 (2010)
Form 8864 (2010) Page 2 

Biodiesel

Biodiesel means the monoalkyl esters of long chain fatty 

acids derived from plant or animal matter which meet the 

registration requirements for fuels and fuel additives 

established by the Environmental Protection Agency 

(EPA) under section 211 of the Clean Air Act, and the 

requirements of the American Society of Testing and 

Materials (ASTM) D6751.

Biodiesel includes both agri-biodiesel and biodiesel 

other than agri-biodiesel. Biodiesel does not include:

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

possession for use as a fuel outside the United States or 

a U.S. possession.

• Any liquid that is eligible for the alcohol and cellulosic 

biofuel fuels credit (Form 6478).

Agri-Biodiesel

Agri-biodiesel means biodiesel derived solely from virgin 

oils, including esters derived from virgin vegetable oils 

from corn, soybeans, sunflower seeds, cottonseeds, 

canola, crambe, rapeseeds, safflowers, flaxseeds, rice 

bran, mustard seeds, and camelina, and from animal fats.

Renewable Diesel

Renewable diesel means liquid fuel derived from biomass 

(defined below) that meets the registration requirements 

for fuels and fuel additives established by the EPA under 

section 211 of the Clean Air Act, and the requirements of 

the ASTM D975 or D396, or other equivalent standard 

approved by the IRS, or a Department of Defense 

specification for military jet fuel or an ASTM specification 

for aviation turbine fuel. For aviation uses, treat kerosene 

as diesel fuel when figuring a renewable diesel mixture 

credit.

Renewable diesel does not include:

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

possession for use as a fuel outside the United States or 

a U.S. possession.

• Any fuel derived from co-processing biomass with 

feedstock that is not biomass.

• Any liquid eligible for the alcohol and cellulosic biofuel 

fuels credit (Form 6478).

Biomass. Biomass means any organic material other

than oil and natural gas (or any product thereof) and coal 

(including lignite) or any product thereof.

Biodiesel and Renewable Diesel Credits

The biodiesel or renewable diesel reported on lines 1 

through 3 must not be a mixture. The credits are for 

biodiesel or renewable diesel 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 fuel used in a trade or 

business that was purchased in a retail sale described 

above.

Caution. You may be liable for a 24.4 cents per gallon

excise tax on biodiesel or renewable diesel you sold (in

your trade or business) for use or used in a dieselpowered highway vehicle or diesel-powered train. Report 

the tax liability on Form 720 on the line for IRS No. 79 for 

the quarter in which the biodiesel was sold or used or IRS 

No. 60(b) for the quarter in which the renewable diesel 

was sold or used.

Biodiesel and Renewable Diesel Mixture Credits

The biodiesel or renewable diesel reported on lines 4 

through 6 must be used to make a qualified mixture. A 

qualified mixture combines biodiesel or renewable diesel 

with diesel fuel (defined below), determined without 

regard to any use of kerosene. But treat the kerosene as 

diesel fuel when figuring a renewable diesel mixture credit 

for certain aviation fuel (see Renewable Diesel above). 

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 of 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. You may be liable for a 24.4 cents per gallon

excise tax on biodiesel or renewable diesel used to

produce blended taxable fuel outside the bulk transfer

terminal system if the mixture is diesel fuel. Report the tax 

liability on Form 720 on the line for IRS No. 60(c) for the 

quarter in which the mixture was sold or used.

Diesel fuel. Diesel fuel means:

• Any liquid that, without further processing or blending, 

is suitable for use as a fuel in a diesel-powered highway 

vehicle or diesel-powered train, and

• Transmix.

A liquid is suitable for this use if the liquid has practical 

and commercial fitness for use in the propulsion engine of 

a diesel-powered highway vehicle or diesel-powered 

train. A liquid may possess this practical and commercial 

fitness even though the specified use is not the liquid’s 

predominant use. However, a liquid does not possess this 

practical and commercial fitness solely by reason of its 

possible or rare use as a fuel in the propulsion engine of a 

diesel-powered highway vehicle or diesel-powered train. 

Diesel fuel does not include gasoline, kerosene, excluded 

liquid, No. 5 and No. 6 fuel oils covered by ASTM 

specification D396, or F-76 (Fuel Naval Distillate) covered 

by military specification MIL-F-16884. 

An excluded liquid is any liquid that (a) contains less 

than 4% normal paraffins, or (b) has a (i) distillation range 

of 125° F or less, (ii) sulfur content of 10 parts per million 

or less, and (iii) minimum color of +27 Saybolt. For 

example, biodiesel is always an excluded liquid because 

it does not contain paraffins. But a biodiesel mixture may 

not be an excluded liquid.
Form 8864 (2010) Page 3 

Transmix means a by-product of refined products 

created by the mixing of different specification products 

during pipeline transportation.

Qualified Agri-Biodiesel Production

Qualified agri-biodiesel production means up to 15 million 

gallons of agri-biodiesel which is produced by an eligible 

small agri-biodiesel producer (defined below), and which 

during the tax year:

1. Is sold by such producer to another person:

a. For use by such person in the production of a 

qualified biodiesel mixture in such other person’s trade or 

business (other than casual off-farm production),

b. For use by such person as a fuel in a trade or 

business, or

c. Who sells such agri-biodiesel at retail to another 

person and places such agri-biodiesel in the fuel tank of 

such other person, or

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

described in (1).

Note. Production of renewable diesel is not qualified agribiodiesel production.

Eligible small agri-biodiesel producer. An eligible small 

agri-biodiesel producer is a person who, at all times 

during the tax year, has a productive capacity for agribiodiesel not in excess of 60 million gallons.

Aggregation rule. All members of the same controlled

group of corporations (see section 267(f)) and all persons 

under common control (see section 52(b) but treat an 

interest of more than 50% as a controlling interest) are 

treated as 1 person for purposes of the 15 and 60 million 

gallon limits.

Partnership, S corporation, and other pass-through 

entities. The 15 and 60 million gallon limits discussed

above are applied at both the entity level and at the

partner or similar level.

Registration

All producers and importers of biodiesel or renewable 

diesel must be registered with the IRS. All persons 

producing blended taxable fuel must be registered. 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 amount 

of biodiesel or renewable diesel. If any amount is claimed 

(or will be claimed) with respect to any amount of 

biodiesel or renewable diesel 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 

8864 for that amount of biodiesel or renewable diesel. 

Recapture of Credit

You must pay a tax on each gallon of biodiesel or 

renewable diesel on which a credit was claimed at the 

rate used to figure the credit if you:

• Use it (including a mixture) other than as a fuel,

• Buy it at retail and use it to create a mixture,

• Separate it from a mixture, or

• Use agri-biodiesel on which the small agri-biodiesel 

producer credit was claimed for a use not described 

under Qualified Agri-Biodiesel Production above.

Report the tax on Form 720, Quarterly Federal Excise 

Tax Return.

Additional Information

See Pub. 510, Excise Taxes.

Specific Instructions

Use lines 1 through 8 to figure any biodiesel and 

renewable diesel fuels credit from your own trade or 

business.

Skip lines 1 through 8 if you are claiming only a credit 

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

is, an S corporation, partnership, estate, trust, or 

cooperative).

Line 8

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 27 of Form 6251, line 23 of Schedule I 

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

Line 9

If you are allocated a small agri-biodiesel producer credit 

from a pass-through entity, the entity must tell you the 

number of gallons for which it claimed the credit and its 

productive capacity for agri-biodiesel. You, as a 

shareholder, partner, beneficiary, or patron, are subject to 

the 15 million gallon limitation for line 7 and the 60 million 

gallon productive capacity limitation for an eligible small 

agri-biodiesel producer.

Line 11

A cooperative, estate, or trust allocating the small agribiodiesel credit must give the patron or beneficiary a 

statement providing them with the number of gallons for 

which it claimed the credit and its productive capacity for 

agri-biodiesel. An estate or trust must also provide the 

amount of the small agri-biodiesel credit included as part 

of the pass-through credit. See the above instructions for 

line 9.
Form 8864 (2010) Page 4 

Cooperatives. A cooperative described in section

1381(a) can elect to allocate any part of the small agribiodiesel producer credit among the patrons of the 

cooperative. The credit is allocated among the patrons 

eligible to share in patronage dividends on the basis of 

the quantity or value of business done with or for such 

patrons for the tax year.

The cooperative is deemed to have made the election 

by completing line 11. However, the election is not 

effective unless (a) made on a timely filed return (including 

extensions) and (b) the organization designates the 

apportionment in a written notice mailed to its patrons 

during the payment period described in section 1382(d).

If you timely file 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). Enter “Filed pursuant to section 

301.9100-2” on the amended return.

Once made, the election cannot be revoked.

Estates and trusts. Allocate the biodiesel and renewable 

diesel fuels credit on line 10 between the estate or trust 

and the beneficiaries in the same proportion as income 

was allocated and enter the beneficiaries’ share on line 

11.

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., 36 min.

Learning about the 

law or the form . . . . . . . . . . . . 57 min.

Preparing and sending the form 

to the IRS . . . . . . . . . . . . 2 hrs., 20 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.