Page 45 - IRS Business Tax Credits Guide

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Instructions for Form 8864 15:19 - 25-Jan-2023
Department of the Treasury
Internal Revenue Service
(Rev. January 2023)
Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit
Section references are to the Internal Revenue Code • Small agri-biodiesel producer credit.
unless otherwise noted. Partnerships, S corporations, cooperatives, estates,
Future Developments and trusts must file this form to claim the credit. All other
For the latest information about developments related to taxpayers aren’t required to complete or file this form if
their only source for this credit is a partnership, S
Form 8864 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/ corporation, cooperative, estate, or trust. Instead, they
can report this credit directly on the appropriate line of
Form8864. Form 3800, General Business Credit (for 2022, that’s Part
What's New III, line 1l).
Credit extension. The Inflation Reduction Act of 2022 Definitions and Special Rules
(IRA 2022) extended the section 40A biodiesel and
renewable diesel fuels credit. Certification
Sustainable aviation fuel. IRA 2022 created a To claim a credit on lines 1 through 6, you generally must
sustainable aviation fuel credit under section 40B, so attach the Certificate for Biodiesel and, if applicable,
line 8 is added to Form 8864. See Line 8, later. Statement of Biodiesel Reseller, to Form 8864. To claim a
credit on line 3 or 6, the certificate must indicate at all
Definition of renewable diesel and treatment of kero- appropriate locations that the fuel to which it relates is
sene. IRA 2022 made the following changes to the renewable diesel and state that the fuel meets the
definition of renewable diesel and the treatment of requirements discussed under Renewable Diesel, later.
kerosene, effective for fuel sold or used after December However, if the certificate or statement was attached to a
31, 2022. previously filed claim, attach a statement with the
• Renewable diesel no longer includes fuel derived from following information.
biomass that meets the requirements of a Department of • Certificate identification number.
Defense specification for military jet fuel or an American • Total gallons of agri-biodiesel, biodiesel other than
Society of Testing Materials (ASTM) specification for agri-biodiesel, or renewable diesel on the certificate.
aviation turbine fuel. • Total gallons claimed on Schedule 3 (Form 8849),
• • Kerosene is no longer treated as diesel fuel for Certain Fuel Mixtures and the Alternative Fuel Credit.
purposes of the renewable diesel mixture credit. • Total gallons claimed on Form 720, Quarterly Federal
Form 8864. The title of Form 8864 is changed to Excise Tax Return, Schedule C.
“Biodiesel, Renewable Diesel, or Sustainable Aviation • Total gallons claimed on Form 4136, Credit for Federal
Fuels Credit.” The changes on the form and the Tax Paid on Fuels.
instructions are made to reflect the sustainable aviation To claim a credit on line 8 for qualified mixtures
fuel credit. produced with a SAF synthetic blending component (SAF
Don’t claim the credit for biodiesel, renewable diesel, or that meets the qualifications of an ASTM D7566 Annex),
sustainable aviation fuel sold or used after 2024, unless the Certificate for SAF Synthetic Blending Component,
that credit is extended. Statement of SAF Synthetic Blending Component
Reminder Reseller (if applicable), and Declaration for SAF Qualified
Mixture must be attached to the first claim filed that’s
Periodic updating. Form 8864 and its instructions will no supported by the certificate or statement. However, if the
longer be updated annually. Instead, they’ll only be certificate, statement, and declaration were attached to a
updated when necessary. previously filed claim, attach a statement with the
following information.
General Instructions • Certificate identification number.
• Total gallons of SAF synthetic blending component on
Purpose of Form the certificate.
Use Form 8864 (Rev. January 2023) to claim your section • Total gallons claimed on Schedule 3 (Form 8849).
• Total gallons claimed on Form 720.
40A biodiesel and renewable diesel fuels credit or the • Total gallons claimed on Form 4136.
section 40B sustainable aviation fuel credit. Claim the
credit for the tax year in which the sale or use occurs. The See Notice 2005-62 (biodiesel and aviation-grade
section 40A credit consists of the: kerosene) on page 443 of I.R.B. 2005-35 at
• Biodiesel credit, IRS.gov/Pub/IRB/IRB2005–35#NOT2005–62; Notice
• Renewable diesel credit, 2023-6, or Pub.510/ExciseTaxes, for more information.
• Biodiesel mixture credit,
• Renewable diesel mixture credit, and

Jan 25, 2023 Cat. No. 66373S