BFC: Biodiesel and Green Diesel Fuel Producers Tax Credit (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form BFC is an application for the Biodiesel and Green Diesel Fuel Producers Tax Credit and is also used to report a transfer of the credit. It reports fuel production, calculates the credit, and records credit transfer details when applicable.
Who files this form
Use Form BFC to apply for the Biodiesel and Green Diesel Fuel Producers Tax Credit after the Virginia Department of Energy certifies that you meet the requirements, or to report a transfer of the credit.
The credit is available to corporate and individual taxpayers during their first 3 years of production. Eligible producers produce up to 2 million gallons of biodiesel or green diesel fuel per year in Virginia, using feedstock originating within the United States.
Pass-through entities allocating the credit to participants must also file Form TCA and give each participant a Schedule VK-1.
When it's due
For the 2024 version of Form BFC, the text gives these timing rules rather than fixed calendar dates:
- Form BFC: Submit within 90 days of the credit origination or transfer, but at least 60 days before filing your annual return to claim the credit.
- Credit transfers: Complete the transfer before the end of a taxable year to use the credit for that taxable year.
- Form TCA for pass-through entities: File within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns.
What you'll need
Have the following ready to complete Form BFC:
- Taxpayer name, SSN or FEIN, address, and contact information.
- Tax year ending date, fuel production start date, and type of fuel produced.
- For a credit application, the number of gallons produced annually and a copy of the certificate issued by the Virginia Department of Energy.
- For a credit transfer, each transferee's name, SSN or FEIN, address, contact information, transfer date, sale price, and credit amount transferred.
- The information needed to complete and sign the declaration in Section IV.
Pass-through entities distributing the credit must also file Form TCA and provide Schedule VK-1 to each participant.
How to file
- Check the reason for submitting Form BFC.
- For a credit application, complete Sections I, II, and IV and enclose a copy of the Department of Energy certificate. In Section II, multiply annual gallons produced by $0.01 and enter the lesser of that amount or $5,000 as the credit amount.
- For a credit transfer, complete Sections I, III for each transferee, and IV.
- Sign the declaration in Section IV.
Mail the completed Form BFC and enclosures to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Or fax them to (804) 774-3902. Do not both mail and fax.
Pass-through entities may send Form TCA to the same address, marked ATTN: Tax Credit Unit, or fax it to the same number. Do not do both.
Common mistakes
- Completing Form BFC before business registration: All business taxpayers should be registered with the Department of Taxation first. If not registered, complete Form R-1.
- Submitting too close to filing your return: Follow the printed submission timing to avoid processing delays.
- Sending both a mailed and faxed submission: The text says to use one method, not both.
- Entering an email address when you do not want electronic communications: Providing an email address gives consent for emailed communications about this application. Leave the email fields blank if you do not want them.
- Failing to file Form TCA when allocating the credit: This may cause the participant's credit claim to be disallowed or delay processing of the participant's return.
Questions people ask
How much is the credit?
The credit is $0.01 per gallon produced, up to $5,000 annually. It is available only during the first 3 years of production.
Can I receive a refund or carry unused credit forward?
The credit is nonrefundable and cannot exceed the tax liability for the year it is claimed. Unused credit may be carried over to the next 3 taxable years.
Can I transfer the credit to another taxpayer?
Yes. Complete Section III for each transferee. The transfer must be completed before the end of a taxable year to use the credit for that taxable year.
What if I produce both biodiesel and green diesel?
Check both fuel-type boxes in Section I.
Where can I get help?
Call the Virginia Department of Taxation's Tax Credit Unit at (804) 786-2992. Tax forms and additional information are available at www.tax.virginia.gov.