BFC: Biodiesel and Green Diesel Fuel Producers Tax Credit (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form BFC is an application for the Biodiesel and Green Diesel Fuel Producers Tax Credit or a transfer of that credit. It reports annual fuel production and the credit calculation, or details about the credit transfer.
Who files this form
Virginia biodiesel and green diesel fuel producers use Form BFC to apply for the credit after the Virginia Department of Energy certifies that they have satisfied the requirements. Form BFC is also used to report a credit transfer.
The credit is available to corporate and individual taxpayers during the first 3 years of production. Eligible producers produce up to 2 million gallons per calendar 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.
What you'll need
For a credit application, enclose a copy of the certificate issued by the Virginia Department of Energy.
Have the following information ready:
- Taxpayer name, SSN or FEIN, address, and contact information.
- Tax year ending date, production start date, and type of fuel produced.
- Number of gallons produced annually.
- For a transfer, each transferee’s identifying and contact information, the transfer date, sale price, and credit amount transferred.
The form also requires a signed declaration, printed name, title, and date.
How to file
- Check the reason for submitting Form BFC.
- For a credit application, complete Sections I, II, and IV and enclose the Department of Energy certificate. Multiply annual gallons produced by $0.01, then enter that amount or $5,000, whichever is less.
- For a credit transfer, complete Sections I, III for each transferee, and IV.
- Sign the declaration and submit the completed form and enclosures by mail or fax. Do not use both methods.
Mail to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Fax: (804) 774-3902
Common mistakes
- Submitting too close to filing your return. To avoid processing delays, Form BFC should be submitted within 90 days of credit origination or transfer, but at least 60 days before filing the annual return claiming the credit.
- Skipping business registration. All business taxpayers should be registered with the Department before completing Form BFC. If not registered, complete Form R-1.
- Sending the same submission by both mail and fax. Choose one method, not both. This also applies to Form TCA submissions.
- Overlooking Form TCA for a pass-through allocation. It should be filed within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns. Failure to file may cause the credit claim to be disallowed or delay processing.
- Providing an email address when you do not want electronic communications. Entering an email address gives consent to emailed communications about the application. Leave the email spaces blank if you do not want them.
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.
Is the credit refundable?
No. The credit is nonrefundable, and the amount allowed cannot exceed the tax liability for the taxable year in which it is claimed.
Can unused credit be carried forward?
Yes. Credit not used for the taxable year may be carried over to the next 3 taxable years.
Can I transfer the credit to another taxpayer?
Yes. The transfer must be completed before the end of a taxable year for the credit to be used for that taxable year.
Where can I get help?
Call the Virginia Department of Taxation at (804) 786-2992. Forms and additional information are available at www.tax.virginia.gov.