Clean heating fuel credit
Who is eligible?
You are entitled to this refundable credit if:
- you or your business purchased bioheating fuel to be used for space heating or hot water production for residential purposes within New York State. Bioheating fuel purchased on or after January 1, 2017, must contain at least 6% biodiesel per gallon of bioheating fuel to qualify for the credit.
The percentage of biodiesel included in the bioheating fuel is the number or numbers preceded by the letter B in the bioheating fuel designation. For example, bioheating fuel designated B10 contains 10% biodiesel.
How much is the credit?
- The credit is equal to one cent for each percent of biodiesel per gallon of bioheating fuel purchased before January 1, 2023. It may not exceed 20 cents per gallon.
Example: On February 1, you purchase 250 gallons of bioheating fuel to be used for residential heating purposes within New York State. The bioheating fuel contains 20% biodiesel (B20). The amount of credit allowed for this purchase is $50.00 ($0.20 X 250 gallons).
What are the recordkeeping requirements?
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Clean heating fuel credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
- Form CT-241, Claim for Clean Heating Fuel Credit, and its instructions, (for corporations); or
- Form IT-241, Claim for Clean Heating Fuel Credit, and its instructions, (for all others).
To learn about other New York State tax credits available to businesses, see Business incentives.