Section 3. SCOPE

This notice provides the only method for claiming 2010 biodiesel and alternative fuel incentives. The Internal Revenue Service (IRS) will neither process nor pay claims for 2010 biodiesel and alternative fuel incentives submitted by any method, or on any form, that is not described in this notice. Thus, the IRS will neither process nor pay 2010 biodiesel and alternative fuel incentive claims that are submitted on Form 720, Quarterly Federal Excise Tax Return . In addition, claimants that filed “protective” or anticipatory claims

February 7, 2011 463 2011–6 I.R.B.

during 2010 for biofuel and alternative fuel incentives covered by this notice must refile their claims pursuant to the procedures provided in this notice. The IRS will neither process nor pay protective or anticipatory claims previously filed with the IRS.

Except as provided by this notice, the rules in Notice 2005–4, 2005–1 C.B. 289 (as modified by Notice 2005–62, 2005–2 C.B. 443), and Notice 2006–92, 2006–2 C.B. 774, apply to claims for 2010 biodiesel and alternative fuel incentives. However, § 704(b) of the Act modifies the definition of alternative fuel under § 6426(d)(2) to exclude any fuel (including lignin, wood residues, or spent pulping liquors) derived from the production of paper or pulp. Thus, black liquor, a byproduct of the paper milling process in kraft mills, is not eligible for credits and payments related to the sale or use of alternative fuel mixtures after December 31, 2009.

This notice does not affect 2010 claims for the alcohol fuel mixture credit under § 6426(b) or the alcohol fuel mixture payment under § 6427(e). Taxpayers should continue to submit these claims separately on, and in accordance with, the appropriate form and form instructions for those claims.

The credit for liquefied hydrogen did not expire at the end of 2009, and claims relating to liquefied hydrogen sold or used during 2010 may be submitted by the method prescribed in this notice (if the credit was not previously claimed) or by any method that was permitted for claims relating to liquefied hydrogen sold or used before calendar year 2010.

This notice does not affect 2010 claims for the nonrefundable income tax credit under § 40A(b)(1) for biodiesel (including renewable diesel) mixtures, under § 40A(b)(2) for biodiesel (including renewable diesel), or under § 40A(b)(4) for the small agri-biodiesel producer credit. Taxpayers should continue to submit these claims separately on, and in accordance with, Form 8864, Biodiesel and Renew- able Diesel Fuels Credit . A taxpayer must submit Form 8864 with its income tax return in accordance with the instructions to its income tax return form. Taxpayers are reminded that under § 40A(c), credits allowable under § 40A must be reduced to the extent that any benefit is claimed

under §§ 6426 and 6427 with respect to the same biodiesel (including renewable diesel).

Similarly, this notice does not affect 2010 claims for the refundable income tax credit under § 34 for biodiesel mixtures, alternative fuel, or alternative fuel mixtures. Taxpayers should continue to submit these claims separately on, and in accordance with, Form 4136, Credit for Federal Tax Paid on Fuels . A taxpayer must submit Form 4136 with its income tax return in accordance with the instructions to its income tax return form. Taxpayers are reminded that under § 34(b), credits are not allowed under § 34 for any amount properly payable under § 6427 and claimed in a timely filed claim. For this purpose, the IRS will treat as timely filed any claim submitted for amounts payable under § 6427 that conforms to the rules provided in this notice.