The State of New York is giving a refundable tax credit of up to 20 cents a gallon on clean heating fuel, also known as biofuels. All you need to know is your dates of purchase, gallons purchased and percent of biofuel. Many oil companies that deliver biofuels will give you a delivery schedule for the entire year. You can make a copy and attach it to Form IT-241 and transfer the credit to your primary NYS tax form and reduce your tax.
An average home, using between 1,500 and 2,000 gallons per year, would get a credit of between $300 and $400 dollars if their biofuel is 20% (the highest credit) of the total amount. If the percentage is less, the credit decreases proportionately.
And the good news is that biofuels do not cost any more than regular oil and burn cleaner.
The fuel must be used to heat a residence or for hot water production within New York State.
Other states may also be giving a similar credit but you have to check on a state-by-state basis.
Howard Lipset, CPA
Progressive Management, Inc.