Par. 20. Sections 48.6426-1 through 48.6426-7 are added to read as follows:
(a) Overview. This section provides rules under which an alcohol fuel mixture producer may claim an excise tax credit under section 6426, a payment under section 6427, or an income tax credit under section 34. These claims relate to the mixture producer's sale or use of an alcohol fuel mixture and are based on the amount of alcohol used to produce the alcohol fuel mixture. For the applicable claim rate, see section 6426.
(b) Conditions to allowance —(1) Excise tax credit. A claim for the alcohol fuel mixture credit with respect to an alcohol fuel mixture is allowed under section 6426 only if each of the following conditions is satisfied:
(i) The claimant produced the alcohol fuel mixture for sale or use in the trade or business of the claimant.
(ii) The claimant sold the alcohol fuel mixture for use as a fuel or used the alcohol fuel mixture as a fuel.
(iii) The claimant has made no other claim with respect to the alcohol in the mixture or, if another claim has been made, such other claim is disregarded under this paragraph (b)(1)(iii). A claim is disregarded under this paragraph (b)(1)(iii) if it is—
(A) A claim for the small ethanol producer credit under section 40; or
(B) An erroneous claim under section 6427 and either the claim has been disallowed or the claimant has repaid the government the amount received under section 6427 with interest.
(iv) The claimant has filed a timely claim on Form 720, “Quarterly Federal Excise Tax Return,” that contains all the information required in paragraph (c) of this section.
(2) Payment or income tax credit. A claim for an alcohol fuel mixture payment under section 6427 or an income tax credit under section 34 is allowed only if—
(i) The conditions of paragraphs (b)(1)(i) and (ii) of this section are met; and
(ii) The claimant has filed a timely claim for payment on Form 720 or Form 8849, “Claim for Refund of Excise Taxes,” or for a credit on Form 4136, “Credit for Federal Tax Paid on Fuels,” that contains all the information required by paragraph (c) of this section.
(3) ETBE; sold for use or used as a fuel. An alcohol fuel mixture that is produced at a refinery and that includes ethyl tertiary butyl ether or other ethers produced from alcohol is treated as meeting the requirement of paragraph (b)(1)(ii) of this section when the mixture is removed from the refinery and any subsequent sale or use of the mixture is disregarded for purposes of this section.
(4) Overall limitations on credits and payments. See § 48.6426-7(a) for overall limitations on credits and payments allowed with respect to mixtures under sections 34, 6426, and 6427.
(c) Content of claim. Each claim for an alcohol fuel mixture credit or payment must contain the following information with respect to the mixture covered by the claim:
(1) The amount of alcohol in the alcohol fuel mixture.
(2) A statement that the conditions to allowance described in paragraph (b) of this section have been met.
(3) A statement that the claimant either—
(i) Produced the alcohol it used in the mixture; or
(ii) Has in its possession a record of the name, address, and employer identification number of the person(s) that sold the alcohol to the claimant and the date of purchase.
(d) Effective/applicability date. This section is applicable on and after the date these regulations are published as final regulations in the Federal Register .