qualified biodiesel mixture
(1) Biodiesel mixture credit (A) In general The biodiesel mixture credit of any taxpayer for any taxable year is $1.00 for each gallon of biodiesel used by the taxpayer in the production of a qualified biodiesel mixture. (B) Qualified biodiesel mixture The term “qualified biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3) ), determined without regard to any use of kerosene, which— (i) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (ii) is used as a fuel by the taxpayer producing such mixture. (C) Sale or use must be in trade or business, etc. Biodiesel used in the production of a qualified biodiesel mixture shall be taken into account— (i) only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and (ii) for the taxable year in which such sale or use occurs. (D) Casual off-farm production not eligible No credit shall be allowed under this section with respect to any casual off-farm production of a qualified biodiesel mixture.