26 USC § 87 - Alcohol and biodiesel fuels credits

---
identifier: "/us/usc/t26/s87"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 87 - Alcohol and biodiesel fuels credits"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "87"
section_name: "Alcohol and biodiesel fuels credits"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "B"
subchapter_name: "Computation of Taxable Income"
part_number: "II"
part_name: "ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 96–223, title II, § 232(c)(1), Apr. 2, 1980, 94 Stat. 276, § 86; renumbered § 87, Pub. L. 98–21, title I, § 121(a), Apr. 20, 1983, 97 Stat. 80; amended Pub. L. 98–369, div. A, title IV, § 474(r)(3), July 18, 1984, 98 Stat. 839; Pub. L. 108–357, title III, § 302(c)(1)(A), Oct. 22, 2004, 118 Stat. 1465; Pub. L. 117–169, title I, § 13203(e), Aug. 16, 2022, 136 Stat. 1935.)"
---


# § 87. Alcohol and biodiesel fuels credits

Gross income includes—

**(1)** the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a),

**(2)** the biodiesel fuels credit determined with respect to the taxpayer for the taxable year under section 40A(a), and

**(3)** the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a).

---

**Source Credit**: (Added Pub. L. 96–223, title II, § 232(c)(1), Apr. 2, 1980, 94 Stat. 276, § 86; renumbered § 87, Pub. L. 98–21, title I, § 121(a), Apr. 20, 1983, 97 Stat. 80; amended Pub. L. 98–369, div. A, title IV, § 474(r)(3), July 18, 1984, 98 Stat. 839; Pub. L. 108–357, title III, § 302(c)(1)(A), Oct. 22, 2004, 118 Stat. 1465; Pub. L. 117–169, title I, § 13203(e), Aug. 16, 2022, 136 Stat. 1935.)

## Editorial Notes

### Amendments

2022—Par. (3).  added par. (3).

2004— amended section catchline and text generally. Prior to amendment, text read as follows: “Gross income includes the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a).”

1984— amended section generally, substituting “the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a)” for “an amount equal to the amount of the credit allowable to the taxpayer under section 44E for the taxable year (determined without regard to subsection (e) thereof)”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2022 Amendment

Amendment by  applicable to fuel sold or used after , see , set out as an Effective Date note under .

### Effective Date of 2004 Amendment

Amendment by  applicable to fuel produced, and sold or used, after , in taxable years ending after such date, see , set out as a note under .

### Effective Date of 1984 Amendment

Amendment by  applicable to taxable years beginning after , and to carrybacks from such years, see , set out as a note under .

### Effective Date

Section applicable to sales or uses after , in taxable years ending after such date, see , set out as a note under .