Header
Name(s) shown on return and identifying number. The form is attached to the tax return as attachment sequence No. 142.
8896
Low Sulfur Diesel Fuel Production Credit
- Agency
- IRS
- Revision
- Rev. December 2019
- Fillable fields
- 12
- Pages
- 2
- Official source
- IRS form page
- Checked
- October 21, 2026
Form 8896: Low Sulfur Diesel Fuel Production Credit
Form 8896 is used to claim the low sulfur diesel fuel production credit. The IRS About page says qualified small business refiners use this form. The instructions say the credit generally is 5 cents for every gallon of low sulfur diesel fuel produced by a qualified small business refiner during the tax year, and that the total credits allowed for all tax years cannot be more than the refiner's qualified costs limitation on line 3. The credit is part of the general business credit.
The form defines low sulfur diesel fuel as diesel fuel with a sulfur content of 15 parts per million or less. The form says to attach it to the tax return, and its general and line instructions are printed on the form itself.
You can fill out Form 8896 free in your browser on this page and download the result without an account.
What's on Form 8896
Lines 1 and 2: gallons and credit
Line 1 holds the gallons of low sulfur diesel fuel produced. Line 2 multiplies line 1 by $0.05.
Lines 3 to 6: qualified costs limitation
Line 3 is the qualified costs limitation and line 4 the credits allowed for all prior tax years. Line 5 subtracts line 4 from line 3, and line 6 takes the smaller of line 5 or line 2.
Line 7: credits from pass-through entities
Credits from partnerships, S corporations and cooperatives, as shown on Schedule K-1 (Form 1065), Schedule K-1 (Form 1120-S) or Form 1099-PATR.
Lines 8 to 10: total and cooperative allocation
Line 8 adds lines 6 and 7. Line 9 is the amount allocated to patrons of a cooperative, and line 10 subtracts line 9 from line 8.
Instructions on the form
General instructions with the definitions of low sulfur diesel fuel, small business refiner and qualified costs, then specific instructions for lines 1, 3, 4, 7 and 9.
How to fill out Form 8896
- 1
Line 1
Enter the number of gallons of diesel fuel produced with a sulfur content of 15 parts per million or less.
- 2
Line 3
The instructions say to enter 25% of the qualified costs for the facility that produced the fuel on line 1 if average daily domestic refinery runs were not more than 155,000 barrels for the 1-year period ending on December 31, 2002. Above 155,000 barrels the 25% is reduced, and the instructions show a worked example.
- 3
Lines 4 to 6
Enter the total credits allowed for all prior tax years on line 4, as determined for line 6. Subtract line 4 from line 3 on line 5, then enter the smaller of line 5 or line 2 on line 6.
- 4
Line 7
Enter credits from Schedule K-1 (Form 1065), box 15 (code P), Schedule K-1 (Form 1120-S), box 13 (code P), and Form 1099-PATR, box 12 (box 11 for 2019, box 10 before 2019), or another notice of credit allocation.
- 5
Line 8
Add lines 6 and 7. The form says cooperatives go to line 9, partnerships and S corporations report the amount on Schedule K, and all others report it on Form 3800, Part III, line 1m.
- 6
Lines 9 and 10
A cooperative described in section 1381(a) can elect to allocate any part of the credit to its patrons by completing line 9. Line 10 subtracts line 9 from line 8 and is reported on Form 3800, Part III, line 1m.
The instructions say lines 1 through 6 figure any credit from the filer's own trade or business.
Why fill Form 8896 on indox
You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.
- Fill the form right in your browser, no software to install
- Free to fill and free to download, with no account
- The official blank straight from the IRS, not a copy someone retyped
- Works on a phone, tablet or computer
Where it goes, timing and elections
Where it goes
The form says to attach it to the tax return. The final amount goes to Schedule K for partnerships and S corporations, and to Form 3800, Part III, line 1m for all others.
Certification timing
The instructions say the IRS certification is obtained not later than June 29, 2008, or, if later, the date that is 30 months after the first day of the first tax year in which the credit is determined.
Qualified costs period
Qualified costs are costs paid or incurred to comply with the EPA highway diesel fuel sulfur control requirements from January 1, 2003, to the earlier of 1 year after the refiner's EPA compliance date for the facility or December 31, 2009.
Reduced deductions
The form's tip says that unless the filer elects not to take this credit, deductions are reduced by the amount of the credit. See section 280C(d).
Cooperative election
The instructions say the election is effective only if made on a timely filed return (including extensions) and the cooperative designates the apportionment in a written notice or on Form 1099-PATR mailed to its patrons. Once made, it cannot be revoked.
Late election
A cooperative that timely filed without the election can still make it on an amended return within 6 months of the due date (excluding extensions), with "Filed pursuant to section 301.9100-2" written on it.
Related forms
3800
General Business Credit
1,921 fields, 9 pages
1065
Partner's Share of Income, Deductions, Credits, etc.
111 fields, 1 page
1120-S
Shareholder’s Share of Income, Deductions, Credits, etc.
114 fields, 1 page
1099-PATR
Taxable Distributions Received From Cooperatives
46 fields, 4 pages
8810
Corporate Passive Activity Loss and Credit Limitations
20 fields, 1 page
1065
U.S. Return of Partnership Income
440 fields, 6 pages
Who files Form 8896?
The IRS About page says qualified small business refiners use this form to claim the credit.
Official sources and the blank
Do it all with indox
No tool matches that search.
Questions about Form 8896
Who uses Form 8896?
The IRS About page says qualified small business refiners use this form to claim the low sulfur diesel fuel production credit.
How much is the credit per gallon?
The instructions say the credit generally is 5 cents for every gallon of low sulfur diesel fuel produced during the tax year, limited in total by the qualified costs limitation on line 3.
What counts as low sulfur diesel fuel?
The form defines it as diesel fuel with a sulfur content of 15 parts per million or less.
Does a partner or S corporation shareholder file Form 8896?
The instructions say other taxpayers whose only source for this credit is a partnership, S corporation or cooperative are not required to complete or file the form. They can report the credit directly on Form 3800, Part III, line 1m.
Where are the instructions for Form 8896?
They are printed on the form itself, on pages 1 and 2. The IRS About page links no separate instructions.
Is Form 8896 sent to the IRS on its own?
No. The form says to attach it to the tax return.