Schedule BIO: Application and Credit Certificate of Income Tax/LLET Credit- Biodiesel (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Schedule BIO is the application and credit certificate for the biodiesel income tax and limited liability entity tax (LLET) credit. It reports gallons of biodiesel produced or B100 blended and renewable diesel produced in Kentucky, the credit approved by the Department o
Who files this form
Schedule BIO is for taxpayers seeking Kentucky’s biodiesel and renewable diesel credit for qualifying fuel produced or blended in Kentucky during 2025. It reports:
- B100 biodiesel produced in Kentucky.
- B100 biodiesel used in blended biodiesel produced in Kentucky.
- Renewable diesel produced in Kentucky.
The fuel must meet the current ASTM standards. Re-blending already blended biodiesel does not qualify. Fuel produced or blended in another state does not qualify.
When it's due
- Application for the 2025 calendar year: Fax or email Schedule BIO no later than January 15 following the close of the 2025 calendar year. Schedules postmarked or sent after January 15 are void.
- Credit certificate for the 2025 calendar year: The Department of Revenue will issue the certificate by April 15 following the close of the 2025 calendar year.
The required laboratory results for the 2025 application are for July 1 and December 31 of that calendar year.
What you'll need
Gather the following to complete the application:
- Your name or entity name, mailing address, location address, entity type, and contact information.
- Your Social Security number if filing as an individual, or FEIN for other entities.
- Your Kentucky Corporation/LLET account number, if applicable, and Kentucky Special Fuels Dealer’s License account number.
- Gallon totals for qualifying B100 biodiesel produced, B100 used in blends, and renewable diesel produced in Kentucky during 2025.
- Copies of laboratory results for July 1 and December 31 showing that the fuel met ASTM standards. Attach these to Schedule BIO.
- For a blender, proof that the B100 used in the blend meets ASTM standards.
- Dates when your biodiesel or renewable diesel failed to meet ASTM standards, if any.
When claiming the credit on your tax return, attach the credit certificate issued by the Department of Revenue.
How to file
- Enter your identifying information and check the appropriate entity type. If it is not listed, check “Other” and enter the type.
- Complete Part I with Kentucky gallon totals. Add lines 1, 2, and 3 on line 4. Answer the ASTM compliance question and list any failure dates.
- Attach the required laboratory results, then sign and date the application. Leave Parts II and III for the Department of Revenue.
- Fax to 502-564-0058 or email to DORTaxCredits@ky.gov. Credit certification cannot be guaranteed for schedules sent through regular mail.
- Watch for confirmation of receipt. If none arrives within two weeks, contact the Division of Corporation Tax at 502-564-8139 or DORTaxCredits@ky.gov.
After certification, complete Part IV for the credit used:
- LLET: Enter the credit on Schedule TCS, Part II, Column E.
- Corporation income tax: Enter the credit on Schedule TCS, Part II, Column F.
- Individual income tax: Enter the credit on Form 740, 740-NP, or 741.
Attach Schedule BIO to Form 720, 720U, PTE, 725, 740, 740-NP, or 741, as applicable. Attach the credit certificate to the return claiming the credit.
Pass-through entities: Include each recipient’s pro rata share of the approved credit on Schedule K-1. Also email DORTaxCredits@ky.gov with a separate plain text or plain ASCII attachment listing each partner, member, shareholder, or beneficiary’s name, address, telephone number, identification number, and distributive share of the credit.
Common mistakes
- Submitting late: Schedules postmarked or sent after January 15 are void.
- Relying on regular mail: The instructions warn that credit certification cannot be guaranteed for mailed schedules.
- Omitting testing proof: Failure to provide proof of ASTM compliance for July 1 and December 31 results in denial of credit for gallons back to the previous testing date.
- Including ineligible fuel: Re-blended biodiesel and fuel produced or blended outside Kentucky do not qualify.
- Carrying unused credit forward: No carryforward is allowed.
- Reducing LLET too far: The credit cannot reduce LLET below the $175 minimum.
- Missing pass-through reporting: Failure to provide the required electronic recipient information in the specified format forfeits available credits for all partners, members, shareholders, or beneficiaries.
Questions people ask
How much is the credit?
The rate is $1 per qualifying gallon. The annual $10,000,000 cap is shared with the renewable chemical production credit. If total approved credit exceeds the cap, the Department of Revenue calculates each taxpayer’s share using the taxpayer’s requested credit divided by total requested credit, multiplied by the cap.
Is the credit refundable, or can I carry unused credit forward?
No. The credit is nonrefundable, and unused credit cannot be carried forward.
Who completes the approved-credit sections?
The Department of Revenue completes Parts II and III to determine approved gallons and the credit amount.
Can the credit be used against more than one type of tax?
The credit applies against individual income tax, corporation income tax, and/or LLET. The amounts claimed against corporation income tax and LLET may differ. The LLET credit cannot reduce that tax below $175.