Fuel Tax Credits for Bioheat® Fuel: Save Money While Staying Warm

Did you know you can get money back on your taxes for heating with Bioheat® fuel in the Oneonta, NY area? This eco-friendly heating option not only helps reduce carbon emissions but also comes with valuable tax incentives at both the federal and state levels. Read this informative blog from your friends at Blueox Energy to learn how you can get money back for heating with Bioheat® fuel!

Tips To Saving Money On Heating Oil

Federal Tax Credits

Under the Inflation Reduction Act (IRA) of 2022, homeowners who install high-efficiency heating equipment that uses Bioheat® fuel may qualify for a federal tax credit of up to $600¹. To be eligible, the heating system must meet these requirements:

• For oil boilers: At least 87% Annual Fuel Utilization Efficiency (AFUE)
• For oil furnaces: At least 85% AFUE
• The equipment must be certified to burn heating oil with a minimum of 20% biodiesel (B20)

Starting in 2027, the efficiency requirements will increase, requiring a 90% AFUE and compatibility with 50% biodiesel (B50) blends².

New York State Tax Credits

Some states like New York offer additional tax incentives for using Bioheat® fuel. The Clean Heating Fuel Credit provides a refundable tax credit for residents who use heating oil with at least 6% biodiesel³. The credit is calculated as follows:

• 1 cent per gallon for each percentage of biodiesel in the blend, up to a maximum of 20 cents per gallon
• Example: If you purchase 1,000 gallons of B20 Bioheat® fuel, you could receive a $200 tax credit

How to Maximize Your Savings

To ensure you receive the maximum benefits, follow these steps:

1. Purchase the right Bioheat® fuel: Confirm that your fuel meets the minimum biodiesel percentage required for state tax credits.
2. Upgrade to an eligible heating system: If your heating system qualifies, you may be eligible for the $600 federal tax credit.
3. Keep all receipts and documentation: Retain proof of fuel purchases and equipment certifications for tax filing.
4. Stay informed: Tax laws change, so regularly check for updates.

Related Post: What Is Bioheat® Fuel? Exploring the Advantages for NY Homeowners

Save Even More with Bioheat Fuel Delivery from Blueox Energy

By utilizing these tax credits, you can save money while making an environmentally responsible choice. Bioheat® fuel is a win-win for both your wallet and the planet, and there’s no better place to order it from than Blueox Energy. We’re proud to be your local choice for dependable Bioheat® fuel delivery, HVAC services, and so much more. Get in touch with us today!
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³ New York State Department of Taxation and Finance