IRS Form 6478 is used to calculate the section 40 biofuel producer credit for tax years beginning after 2017. The credit is claimed for the tax year in which the sale or use occurs. This credit consists of the second generation biofuel producer credit.
The taxpayer can claim or elect not to claim the biofuel producer credit at any time within 3 years from the due date of their return (determined without regard to extensions) on either an original or an amended return for the tax year of the sale or use.
Partnerships, S corporations, cooperatives, estates, and trusts must file this form to claim the credit. All other taxpayers aren’t required to complete or file this form if their only source for this credit is a partnership, S-corporation, cooperatives, estate, or trust. Instead, they can report this credit directly on the appropriate line of Form 3800, General Business Credit.
Note: The biofuel producer credit is extended for fuel sold or used before 2025. Do not claim the credit for fuel sold or used after 2024 unless the credit is extended again.
Individual tax return
To access the Form 6478 menu in the individual tax return in TaxSlayer Pro, from the Main Menu of the return select:
- Credits
- General Business Credits
- Current Year General Business Credits
Business tax returns
Corporation
To access the Form 6478 menu in the corporation tax return (Form 1120) in TaxSlayer Pro, from the Main Menu of the return select:
- Tax and Payments
- Total Tax
- Total Credits
- General Business Credits (Form 3800)
- Current Year General Business Credits
- Form 6478 - Select and complete as needed. Note that if the only source of the credit is from a pass-through entity the only other menu line needing completion is to indicate the type of credit activity.
- Qualified Second Generation Biofuel Production - Enter the amount of gallons.
- Biofuel Credit from Pass-Through Entities - Click New and enter the pass-through entity's EIN, name, and amount of the credit, and indicate the type of credit, whether passive or nonpassive.
- IRS Registration Number - Enter the SB registration number provided by the IRS. This number is required unless the credit is from a pass-through entity.
- Type of Credit Activity - Indicate the type of credit, whether passive or nonpassive.
S Corporation and Partnership
To access the Form 6478 menu in either the S corporation tax return (Form 1120-S) or partnership return (Form 1065) in TaxSlayer Pro, from the Main Menu of the return select:
- Schedule K
- Credits
- General Business Credits
- Current Year General Business Credits
- Form 6478 - Select and complete as needed. Note that if the only source of the credit is from a pass-through entity the only other menu line needing completion is to indicate the type of credit activity.
- Qualified Second Generation Biofuel Production - Enter the amount of gallons.
- Biofuel Credit from Pass-Through Entities - Click New and enter the pass-through entity's EIN, name, and amount of the credit, and indicate the type of credit, whether passive or nonpassive.
- IRS Registration Number - Enter the SB registration number provided by the IRS. This number is required unless the credit is from a pass-through entity.
- Type of Credit Activity - Indicate the type of credit, whether passive or nonpassive.
Estate and Trust
To access the Form 6478 menu in the estate and trust tax return (Form 1041) in TaxSlayer Pro, from the Main Menu of the return select:
- Tax and Payments
- Total Tax
- General Business Credit
- Current Year General Business Credits
- Form 6478 - Select and complete as needed. Note that if the only source of the credit is from a pass-through entity the only other menu line needing completion is to indicate the type of credit activity.
- Qualified Second Generation Biofuel Production - Enter the amount of gallons.
- Biofuel Credit from Pass-Through Entities - Click New and enter the pass-through entity's EIN, name, and amount of the credit, and indicate the type of credit, whether passive or nonpassive.
- IRS Registration Number - Enter the SB registration number provided by the IRS. This number is required unless the credit is from a pass-through entity.
- Type of Credit Activity - Indicate the type of credit, whether passive or nonpassive.
If the credit is being passed through to the beneficiary(ies), enter it directly on each Schedule K-1. From the Main Menu select:
- Schedule K-1
- Schedule K-1 Input - Add or select the beneficiary.
- Allocable Share Items
- Credits and credit recapture
- Biofuel producer credit - Enter their portion of the credit.
Additional Information: