What is the Clean Heating Fuel Credit?

The Clean Heating Fuel Credit is available to taxpayers for the purchase of bioheat that is used for space heating or hot water production for residential purposes within New York State. The credit is available for tax years beginning on or after January 1, 2006, and before January 1, 2017, and applies to bioheat purchased on or after July 1, 2006, but before July 1, 2007, and on or after January 1, 2008, but before January 1, 2017.

The credit amount equals $.01 per gallon for each percent of biodiesel included in the bioheat, not to exceed $.20 per gallon. To substantiate how the credit was computed, taxpayers should keep copies of all invoices or bills from the supplier(s) that include all the following:
  1. Date of purchase
  2. Number of gallons of bioheat purchased
  3. The percentage of biodiesel included in the bioheat

Note: The percentage of biodiesel included in the bioheat is the number or numbers preceded by the letter B in the bioheat designation. For example, bioheat designated B5 contains 5% biodiesel.

The credit is claimed for the tax year in which the bioheat is purchased.

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