Form Schedule-3 (Form 8 Schedule-3 (Form 8 Certain Fuel Mixtures and the Alternative Fuel Credit

Certain Fuel Mixtures
and the Alternative Fuel Credit

Schedule 3
(Form 8849)
(Rev. January 2021)
Department of the Treasury
Internal Revenue Service
Name as shown on Form 8849

OMB No. 1545-1420

Attach to Form 8849. Don’t file with any other schedule.
▶ Go to www.irs.gov/Form8849 for instructions and the latest information.
▶

EIN or SSN

Total refund (see instructions)

$
Caution: The biodiesel mixture credit and renewable diesel mixture credit must first be taken as a credit against your taxable fuel liability
(gasoline, diesel fuel, and kerosene) reported on Form 720. Similarly, the alternative fuel credit must first be taken on Form 720 as a credit
against your alternative fuel or compressed natural gas (CNG) tax liability. If you have these tax liabilities and you didn’t make the claim on
Form 720, Schedule C, as a credit against those liabilities, you must first file Form 720-X, Amended Quarterly Federal Excise Tax Return,
before Schedule 3 (Form 8849) can be used for the refund. You can’t claim any amounts on Form 8849 that you claimed (or will claim) on Form
720, Schedule C; Form 720-X; or Form 4136, Credit for Federal Tax Paid on Fuels.

Claimant’s registration no. ▶
Enter your registration number, including the prefix. Line 3 claimants must enter their AL registration number.

Period of claim: Enter month, day, and year in
MMDDYYYY format.
1

Reserved for future use

To ▶

From ▶

Reserved for future use
(a)
Rate

(b)
Gallons of alcohol

(c) Amount of claim
Multiply col. (a) by col. (b).

(d)
CRN

a Reserved for future use
b Reserved for future use
2
Biodiesel or Renewable Diesel Mixture Credit
Biodiesel mixtures. Claimant produced a mixture by mixing biodiesel with diesel fuel. The biodiesel used to produce the mixture met ASTM
D6751 and met the EPA’s registration requirements for fuels and fuel additives. The mixture was sold by the claimant to any person for use as
a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable, the Statement of Biodiesel
Reseller. Renewable diesel mixtures. Claimant produced a mixture by mixing renewable diesel with liquid fuel (other than renewable diesel).
The renewable diesel used to produce the renewable diesel mixture was derived from biomass, met the EPA’s registration requirements for
fuels and fuel additives, and met ASTM D975, D396, or other equivalent standard approved by the IRS. The mixture was sold by the claimant
to any person for use as a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable,
Statement of Biodiesel Reseller, both of which have been edited as discussed in the instructions for line 2. See the instructions for line 2 for
information about renewable diesel used in aviation.
(a)
Rate

a Biodiesel (other than agri-biodiesel) mixtures
b Agri-biodiesel mixtures
c Renewable diesel mixtures
3
Alternative Fuel Credit

$1.00
1.00
1.00
(a)
Rate

a
b
c
d
e
f
g
h
i

Liquefied petroleum gas (LPG)
“P” Series fuels
Compressed natural gas (CNG)
Liquefied hydrogen
Fischer-Tropsch process liquid fuel from coal (including peat)
Liquid fuel derived from biomass
Liquefied natural gas (LNG)
Liquefied gas derived from biomass
Compressed gas derived from biomass

$.50
.50
.50
.50
.50
.50
.50
.50
.50

(b)
Gallons of
(c) Amount of claim
Multiply col. (a) by col. (b)
biodiesel or
renewable diesel

$

(b)
(c) Amount of claim
Gallons, or
Multiply col. (a) by col. (b)
gasoline or diesel
gallon equivalent

$

(d)
CRN

388
390
307

(d)
CRN

426
427
428
429
430
431
432
436
437

Send this schedule with completed Form 8849 to: Internal Revenue Service, P.O. Box 312, Covington, KY 41012-0312; on the envelope, write “Fuel Mixture Claim.”
For Privacy Act and Paperwork Reduction Act Notice, see Form 8849 instructions.
Cat. No. 27451F
Schedule 3 (Form 8849) (Rev. 1-2021)

Page 2

Schedule 3 (Form 8849) (Rev. 1-2021)

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

Future Developments
For the latest information about developments related to
Schedule 3 (Form 8849) and its instructions, such as
legislation enacted after they were published, go to
www.irs.gov/Form8849.

How To File
Attach Schedule 3 (Form 8849) to Form 8849. If you
aren’t filing electronically, on the envelope write “Fuel
Mixture Claim” and send it to the IRS at the address at
the bottom of page 1.

Specific Instructions

What’s New

Line 1

Alternative fuel. The alternative fuel credit is scheduled
to expire for fuel sold or used after December 31, 2021.
Don’t claim the credit for fuel sold or used after
December 31, 2021, unless the credit is extended again.

Line 2. Biodiesel or Renewable Diesel
Mixture Credit

Reminders
Biodiesel and renewable diesel mixtures. The biodiesel
and renewable diesel mixture credit is extended for fuel
sold or used through 2022.
Reducing your excise tax liability. For federal income
tax purposes, reduce your section 4081 excise tax liability
by the amount of excise tax credit allowable under
section 6426(c) and your section 4041 excise tax liability
by the amount of your excise tax credit allowable under
section 6426(d), in determining your deduction for those
excise taxes or your cost of goods sold deduction
attributable to those excise taxes.
Schedule 3 (Form 8849) can be filed electronically. For
more information on filing electronically, visit the IRS e-file
website at www.irs.gov/eFile.

Purpose of Form
Use Schedule 3 (Form 8849) to make claims for sales or
uses of biodiesel mixtures, renewable diesel mixtures,
and alternative fuels.

General Instructions
Coordination With Excise Tax Credit
Only one credit may be taken for any 1 gallon of
alternative fuel. If any amount is claimed (or will be
claimed) for any gallon of biodiesel mixture, renewable
diesel mixture, or alternative fuel on Form 720, Form
720-X, Form 8864, or Form 4136, then a claim can’t be
made on Form 8849, Claim for Refund of Excise Taxes,
for that gallon of biodiesel mixture, renewable diesel
mixture, or alternative fuel.

Excise Tax Liability
Persons who blend an untaxed liquid with taxable fuel to
produce a taxable fuel mixture outside the bulk transfer
terminal system must pay the excise tax on the volume of
the untaxed liquid in the mixture.
Use Form 720 to report these taxes. You must also be
registered with the IRS as a blender (M registrants). Line 3
claimants must also have an AL registration number. See
Form 637, Application for Registration (For Certain Excise
Tax Activities).

These lines are reserved for future use.

Claimant. The person that produced and sold or used the
mixture in their trade or business is the only person eligible
to make this claim. The credit is based on the gallons of
biodiesel or renewable diesel in the mixture.
The biodiesel used to produce the biodiesel mixture
must meet ASTM D6751 and meet the Environmental
Protection Agency’s (EPA) registration requirements for
fuels and fuel additives under section 211 of the Clean Air
Act. The renewable diesel used to produce the renewable
diesel mixture must be derived from biomass, meet the
EPA’s registration requirements for fuels and fuel
additives under section 211 of the Clean Air Act, and
meet ASTM D975, D396, or other equivalent standard
approved by the IRS. Renewable diesel also includes fuel
derived from biomass that meets a Department of
Defense specification for military jet fuel or an ASTM
specification for aviation turbine fuel. For a renewable
diesel mixture used in aviation, kerosene is treated as if it
is diesel fuel.
Renewable diesel doesn’t include any fuel
derived from coprocessing biomass (as defined
in section 45K(c)(3)) with a feedstock that isn’t
CAUTION
biomass.
Claim requirements
1. The biodiesel mixture credit may not be claimed for
biodiesel produced outside the United States for use as
a fuel outside the United States. The United States
includes any possession of the United States. The
claimant has a certificate from the producer. See
Certificate below for details.
2. The claim must be for a biodiesel or renewable diesel
mixture sold or used during a period that’s at least 1 week.
3. The claimant has a certificate from the producer. See
Certificate, later, for details.
4. The amount of the claim must be at least $200 unless
the claim is filed electronically. To meet the minimum,
amounts from lines 2 and 3 may be combined.
5. The claim must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar-year
claimant’s claim for a biodiesel mixture sold or used during
June and July must be filed by September 30.

!
▲

Page 3

Schedule 3 (Form 8849) (Rev. 1-2021)

Note: If requirements 2–5 above aren’t met, see Annual
Claims under Additional Information for Schedules 1, 2,
and 3 in the Form 8849 instructions.
Certificate. The Certificate for Biodiesel and, if
applicable, Statement of Biodiesel Reseller must be
attached to the first claim filed that is supported by the
certificate or statement. For the renewable diesel mixture
credit, you must edit the certificate and, if applicable,
statement to indicate that the fuel to which the certificate
and statement relate is renewable diesel and state the
renewable diesel meets the requirements discussed
earlier under Claimant. See Model Certificate O and
Model Statement S in Pub. 510.

Line 3. Alternative Fuel Credit
Claimant. For the alternative fuel credit, the registered
alternative fueler who (1) sold an alternative fuel at retail
and delivered it into the fuel supply tank of a motor
vehicle or motorboat, (2) sold an alternative fuel, delivered
it in bulk for taxable use in a motor vehicle or motorboat,
and received the required statement from the buyer, (3)
used an alternative fuel (not sold at retail or in bulk as
previously described) in a motor vehicle or motorboat, or
(4) sold an alternative fuel for use as a fuel in aviation is
the only person eligible to make this claim.
Claim requirements.
1. The alternative fuel credit may not be claimed for
alternative fuel produced outside the United States for
use as a fuel outside the United States. The United States
includes any possession of the United States.
2. You must be registered with the IRS.
3. The claim must be for an alternative fuel sold or used
(as described above under Claimant) during a period
that’s at least 1 week.
4. The amount of the claim must be at least $200 unless
the claim is filed electronically. To meet the minimum,
amounts from lines 2 and 3 may be combined.
5. The claim must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar-year
claimant’s claim for an alternative fuel sold or used during
June and July must be filed by September 30.

Note: If requirements 2–5 above aren’t met, see Annual
Claims under Additional Information for Schedules 1, 2,
and 3 in the Form 8849 instructions.
Carbon capture requirement. A credit for FischerTropsch process liquid fuel from coal (including peat) can
be claimed only if the fuel is derived from coal produced
at a gasification facility that separates and sequesters at
least 75% of the facility’s total carbon dioxide emissions.
Claim rates.
• CNG has a claim rate (or GGE (gasoline gallon
equivalent)) of 121 cubic feet.
• Compressed gas derived from biomass has a claim rate
(or GGE) of 121 cubic feet.
• LPG has a claim rate (or GGE) of 5.75 pounds or 1.353
gallons of LPG.
• LNG has a claim rate (or DGE (diesel gallon equivalent))
of 6.06 pounds or 1.71 gallons of LNG.
Example. 10,000 gallons of LPG ÷ 1.353 = 7,391 GGE
x $0.50 = $3,695.50 claim amount.

Amount of Claim
Multiply the number of gallons or gasoline (or diesel)
gallon equivalents by the rate and enter the result in the
boxes for lines 2 and 3, column (c).

Total Refund
Add all amounts in column (c) and enter the result in the
total refund box at the top of the first page of the schedule.
See Claim requirements, earlier, for each type of claim.