What is the clean heating fuel credit?
The clean heating fuel credit is available to taxpayers for the purchase of bioheating fuel 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, 2022 (extended), and applies to bioheating fuel purchased on or after July 1, 2006, but before July 1, 2007, and on or after January 1, 2008, but before January 1, 2020. 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. Bioheating fuel purchased on or after September 13, 2017, that is comprised of renewable hydrocarbon diesel blended with conventional home heating oil, may qualify for the credit.
The credit amount equals $.01 per gallon for each percent of biodiesel included in the bioheating fuel, 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 of the following:
• date of purchase,
• number of gallons of bioheating fuel purchased, and
• the percentage of biodiesel included in the bioheating fuel.
Note: 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.
The credit is claimed for the tax year in which the bioheating fuel is purchased. If the amount of the credit exceeds the taxpayer’s tax for the year, the excess is treated as an overpayment of tax to be credited or refunded without interest.
Who is eligible to claim this credit?
• estates or trusts,
• partners in a partnership (including members of a limited liability company (LLC) that is treated as a partnership for federal income tax purposes),
• shareholders of a New York S corporation, and
• beneficiaries of an estate or trust.