Instructions for Form 8864 (2018)

Biodiesel and Renewable Diesel Fuels Credit

Section references are to the Internal Revenue Code unless otherwise noted.

2018


General Instructions

Future Developments

For the latest information about developments related to Form 8864 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form8864.

What’s New

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At the time these instructions went to print, the biodiesel and renewable diesel fuels credit formerly claimed on lines 1 through 8 had expired. You can’t claim the credit on lines 1 through 8 for biodiesel and renewable diesel fuels sold or used after 2017. Lines 1 through 8 are now shown as "Reserved for future use" in case Congress extends the credit for 2018. To find out if legislation extended the credit so you can claim it on your 2018 return, go to IRS.gov/Extenders.

Purpose of Form

Use the 2018 Form 8864 to report any biodiesel and renewable fuels credit you received from a fiscal year partnership, S corporation, cooperative, estate, or trust whose tax year began in 2017 (when the credit was still available) and ends during your 2018 tax year.

Specific Instructions

Lines 1 Through 8

These lines are now shown as "Reserved for future use" in case Congress extends the credit for 2018. When any form, worksheet, or instructions refers to these lines, treat the amounts on these lines as zero.

Line 9

If you’re 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 qualified agri-biodiesel production 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 agri-biodiesel 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.

Cooperatives.

A cooperative described in section 1381(a) can elect to allocate any part of the small agri-biodiesel producer credit to patrons of the cooperative. The credit is allocated 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.

If the cooperative is subject to the passive activity rules, include on line 9 any Form 8864 credits from passive activities disallowed for prior years and carried forward to this year. Complete Form 8810, Corporate Passive Activity Loss and Credit Limitations, to determine the allowed producer credits that can be allocated to patrons. For details, see the Instructions for Form 8810.

The cooperative is deemed to have made the election by completing line 11. However, the election is not effective unless:

  • It is made on a timely filed return (including extensions); and

  • The cooperative designates the apportionment in a written notice or Form 1099-PATR, Taxable Distributions Received From Cooperatives, mailed to its patrons during the payment period described in section 1382(d).

 

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). 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.

If the estate or trust is subject to the passive activity rules, include on line 9 any Form 8864 credits from passive activities disallowed for prior years and carried forward to this year. Complete Form 8582-CR, Passive Activity Credit Limitations, to determine the allowed credit that must be allocated between the estate or trust and the beneficiaries. For details, see the Instructions for Form 8582-CR.

Instructions for Form 8864 - Notices

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 1 hr., 25 min.
Learning about the law or the form 45 min.
Preparing and sending the form to the IRS 2 hr., 01 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.