Form 8864 Instructions
This article will help you understand the purpose of Form 8864, Biodiesel, Renewable Diesel, and Sustainable Aviation Fuel Credit and how to fill it out.
Form 8864 allows taxpayers to claim credits for biodiesel, renewable diesel, and certain fuel mixtures and the small agri-biodiesel producer credit. These credits are available for taxable years beginning in 2018. Partnerships, S corporations, cooperatives, estates, and trusts must file Form 8864 to claim Biodiesel, Renewable Diesel, and Sustainable Aviation Fuel Credit. All other taxpayers don’t need to file this form if the only credit they are claiming is one that was allocated to them from a pass-through entity (S corporation, partnership, cooperative, or trust). They can report this credit directly on the appropriate line of Form 3800, General Business Credit (2022: Part III, Line 1l).
How to File Form 8864?
To claim the credits, file Form 8864, Credit for Biodiesel and Renewable Diesel Fuels, with your tax return. If you are a small agri-biodiesel producer or a qualified small agri-biodiesel production facility, you must also attach a certificate and a statement (see section 480 of Pub 510, Excise Taxes).
In addition to filing Form 8864, you may need to file additional forms and schedules with your tax return. For example, if you are claiming the credits for certain research activities, you must submit a Form 8826-CR, Passive Activity Credit Limitations, to determine your passive activity credit limitations. If you are a foreign corporation, you may need to file Form 2555-CR, Foreign Corporation Credit, to claim certain credits. If you have questions about filing these forms, contact your tax advisor or the IRS.
How to fill out Form 8864?
Use lines 1 through 9 to figure your credit for biodiesel, renewable diesel, and sustainable aviation fuel sold or used in your trade or business.
Line 1: Biodiesel
Line 2: Agri-biodiesel
Line 3: Renewable diesel
Line 4: Biodiesel (other than agri-biodiesel) included in a biodiesel mixture
Line 5: Agri-biodiesel included in a biodiesel mixture
Line 6: Renewable diesel included in a renewable diesel mixture.
Line 7: Qualified agri-biodiesel production
Line 8: Sustainable aviation fuel (see IRS instructions)
Line 9: Add lines 1-8. Include this amount in your income for the tax year. (see IRS instructions).
Line 10: Biodiesel, renewable diesel, or sustainable aviation fuel credit from partnerships, S corporations, cooperatives, estates, and trusts. (see IRS instructions).
Line 11: Add lines 9 and 10. Cooperatives, estates, and trusts go to line 12. Partnerships and S corporations, stop here and report this amount on Schedule K. All others, stop here and report this amount on the appropriate line of Form 3800. (see IRS instructions).
Line 12: Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see IRS instructions)
Line 13: Cooperatives, estates, and trusts, subtract line 12 from line 11. Report this amount on the appropriate line of Form 3800. (see IRS instructions)
