BioheatThe New York State is a pioneer in giving tax incentives for those who use biofuel blends such as Bioheat for their home heating. New York Clean Heating Fuel Tax Credit gives households a chance to make saves, but what’s more important is saving the environment and extending the lifespan of the heating equipment.

Current tax credits is $0.01 per gallon for each percent of biofuel I the heating fuel blend, up to a maximum of 20%. For example, if you use B10 bioheat fuel oil, you will get $0.10 tax credit for each gallon of it. So, if you fill an empty tank of an average size of 250 gallons with a B10 blend you get $25 in tax credit. Greatest saves are, of course made with B20, but you should consider the other good sides of biofuels and bioheat fuel oil blends.

To claim this tax credit, you need to fill the IT-241 credit form which can be found at www.tax.ny.gov/pdf/current_forms/it/it241_fill_in.pdf. This form contains all further information on the requirements, and if you properly fill it, it will be certainly applicable to all the receipts you got from bioheat and other biofuels you submit with it. For all your biofuel deliveries you need to have an invoice containing the following data, the date of purchase, the amount of fuel and the percentage of biofuel in the blend. This info will enable you to properly commute the tax credit amount.
Tax credit is applicable to all residential customers, regardless the income level, the price of fuel or the amount. Even if you do not pay any income tax to the New York State you are still eligible if you fulfil the criteria mentioned.

You have to file the IT-241 along with all receipts that qualify for the biofuel tax credit. Since it’s a tax credit, it’s independent on the price you paid for fuel and discounts you get, the amount is always the same. Note the other benefits of biofuels and Bioheat blends.

Biofuels are renewable, as they’re extracted from oil rich crops which are sown each year. Besides that, your heating equipment will love it. Bioheat has a greater viscosity and is generally cleaner, so your filters and even mechanic parts of the pump will last much longer. In the end, it’s more environment-friendly, thanks to lower percentage of sulfur and carbon dioxide released when burning. The tax credit alone should not be the only reason for switching to the biofuel. Bioheat heating oil doesn’t require any modification or investment to your existing furnace or boiler. It is also cleaner and produces less sludge, which may extend the life of your heating oil tank.

The current credit expires at the end of 2016 and is very likely to be prolonged, but it might be revised. However, although this may look as a minute save to you, if combined with other advantages of heating oil, such as COD deliveries, positive impact on your budget will be noticeable.