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 of

Alcohol Sold or Used

Type of Alcohol Fuel

1

2 $.51

Alcohol 190 proof or greater and alcohol 190 proof or greater

in fuel mixtures

3

3

2

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

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

4

4 Alcohol fuel credit(s) from a partnership, S corporation, estate, trust, or cooperative

(see instructions)

5 Add lines 1 through 4, column (c) 5

6 Alcohol fuel credit included on line 5 from passive activities (see instructions) 6

7 Subtract line 6 from line 5 7

8 Alcohol fuel credit allowed for 2005 from a passive activity (see instructions) 8

9 Carryback of alcohol fuel credit from 2006 (see instructions) 9

10 Current year credit. Add lines 7 through 9 10

Only the rate for ethanol is shown. See instructions for lines 2 and 3 for rates for alcohol other than ethanol.

Allowable Credit Caution: If you have both an alcohol fuel credit and a credit from section B of

Form 8835, do not complete Part II below. Instead, go to Form 8835 (see instructions).

1 $.10 Qualified ethanol fuel production (in gallons)

(see instructions for election)

Cat. No. 13605J

*

Form 6478 (2005)

Credit for Alcohol Used as Fuel

 Attach to your tax return.

For Paperwork Reduction Act Notice, see page 4.

*

11

14a 14a

b Credits from Form 1040, lines 48 through 54 14b

14d

Foreign tax credit

d

f

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

Add lines 14a through 14e 14f

15

Net income tax. Subtract line 14f from line 13. If zero, skip lines 16 through 19 and enter -0- on

line 20

12 Alternative minimum tax (see instructions) 12

15

16 Net regular tax. Subtract line 14f from line 11. If zero or less, enter -0-

18 Subtract line 17 from line 15. If zero or less, enter -0-

Subtract line 19 from line 18. If zero or less, enter -0-

19 19

Credit allowed for the current year. Enter the smaller of line 10 or line 20 here and on Form

1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule

G, line 2c; or the applicable line of your return. If line 20 is smaller than line 10, see instructions 21

c 14c

11 Regular tax before credits (see instructions)

13 Add lines 11 and 12 13

17

General business credit (see instructions)

17

18

Enter 25% (.25) of the excess, if any, of line 16 over $25,000 (see instructions)

20 20

21

e 14e

2005

Part I

Part II

Current Year Credit

Caution:

● See What’s New on page 2 for important changes to this credit.

● You cannot claim any amounts on Form 6478 that you claimed (or will claim) on Schedule C (Form 720), Form 8849, or Form 4136.

$.3778

16

Other specified credits (see instructions)

Nonconventional source fuel credit (Form 8907, line 23)
Form 6478 (2005) 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.

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.

● 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

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.

Recapture of Credit

● 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.

Report the tax on Form 720. 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 Fuel 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.

Part I. Current Year Credit

Use lines 1 through 3 to figure any alcohol fuel credit from

your own trade or business.

The total credit shown in column (c) on lines 1, 2, and 3,

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 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.

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 

(60 million gallons or less for tax years ending after August 8,

2005). This capacity includes alcohol made from petroleum,

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

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:

What’s New

● The American Jobs Creation Act of 2004 requires the

application of the alternative minimum tax rules to the credit

so Form 6478 is no longer filed with Form 3800, General

Business Credit. This means lines 6 through 9 are now made

to accommodate the passive activity rules and the carryback

of any unused credit allowed that previously would have been

reported on Form 3800. Also, this means any carryforward of

the credit from tax years beginning before 2005 cannot be

shown on the Form 6478 currently. Such carryforwards must

be shown on Form 3800.

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.

Registration

All producers and importers of alcohol with a proof of at least

190 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 line 2. 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.

Specific Instructions

● 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

1. Does not exceed 15 million gallons;
Line 10

Form 6478 (2005) Page 3

For an estate or trust, the credit on line 10 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 10, the estate or trust should enter its part of the total

credit. Label it “1041 Portion” and use this amount in Part II to

figure the credit to claim on Form 1041. Also, enter and

identify the beneficiaries’ share of the credit to the right of line

10 and attach a schedule showing how the total credit was

divided.

Line 4

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

ethanol producer credit, you, as a shareholder, partner,

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

limitation for line 1 and the 30-million-gallon (60-million-gallon

for tax years ending after August 8, 2005) 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.

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

shareholder, partner, beneficiary, or patron.

Skip lines 1 through 3 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 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. Cooperatives enter any amount of

the small ethanol producer credit not allocated to patrons.

Multiply by the rate of 10 cents per gallon.

Cooperative Election to Allocate the Small Ethanol

Producer Credit to Patrons. A cooperative described in

section 1381(a) can elect to allocate any part of the small

ethanol producer credit to 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 the patrons for the tax year.

To make an election, attach a statement to your timely filed

return (including extensions) indicating the amounts you would

report in columns (a) and (c) on line 1 of Form 6478 without an

election, the amounts you are electing to allocate to patrons,

and the amounts that will not be allocated.

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

elections). Write “Filed pursuant to section 301.9100-2” on the

amended return.

Once made, the election cannot be revoked.

Important: The amount of the credit determined for lines 2

and 3 below 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 that is 190 proof or

greater and alcohol that is 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.

Line 3

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

proof but at least 150 proof and alcohol that is 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 amount included on line 5 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 8

Enter the passive activity credit allowed for the 2005 credit

for alcohol used as fuel from Form 8582-CR or Form 8810.

Line 9

Use only if you amend your 2005 return to carry back an

unused credit from 2006.

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 2 and 3.

Line 5

S corporations and partnerships do not complete lines 6

through 10. Instead, S corporations and partnerships allocate

the line 5 credit to the shareholders or partners. Attach Form

6478 to the S corporation or partnership return and show on

Schedule K-1 each shareholder’s or partner’s credit. Electing

large partnerships include this credit in “general credits.”

● 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.

If the credit includes the small ethanol producer credit, the 

S corporation or partnership (other than an electing large

partnership) 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 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:

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.

However, if you have a current year credit and a credit from

Section B of Form 8835, Renewable Electricity and Refined

Coal Production Credit, do not complete Part II. Instead, go to

Form 8835 to compute the allowable combined credit.
Form 6478 (2005) 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.

Recordkeeping 7 hr., 10 min.

Learning about the

law or the form 35 min.

Preparing and sending the form

to the IRS 44 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.

Printed on recycled paper

Line 19

Enter the amount of all other allowed credits for the current

year included in the general business credit. If you are filing

Form 3800, enter the amount from line 19 of that form plus the

following.

Line 17

See section 38(c)(5) 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 21

● Form 8844, line 24.

● The amount from the last line of any single separate

general business credit form.

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

limit (line 20 is smaller than line 10), you cannot carry the

unused credit back. You can carry the unused credit forward

up to 20 years.

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.

Line 14e

Include on line 14e any amounts claimed on:

● Form 8834, Qualified Electric Vehicle Credit, line 20;

● Form 8910, Alternative Motor Vehicle Credit, line 18; and

● Form 8911, Alternative Fuel Vehicle Refueling Property

Credit, line 19.

Line 11

Enter the regular tax before credits from the following line of

the appropriate form or schedule.

● Individuals: Form 1040, line 44.

● Corporations: Form 1120, Schedule J, line 3; Form 1120-A, 

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

● Estates and trusts: The sum of the amounts from Form

1041, Schedule G, lines 1a and 1b; or the amount from the

applicable line of your return.

Line 12

Enter the alternative minimum tax (AMT) from the following line

of the appropriate form or schedule.

● Individuals: Form 6251, line 35.

● Corporations: Form 4626, line 14.

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