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Get Paid for Clean, High Efficiency Heating

How do we know that Bioheat® fuel is a clean fuel that’s here to stay? Because the federal government is offering tax credits to offset the cost of new Bioheat® fueled heating equipment. And New York offers state tax credits to residents using Bioheat® fuel in their homes.

Federal Tax Credits

The Inflation Reduction Act of 2022 (IRA) was as much about reducing GHG emissions as it was about inflation, and it recognized Bioheat® fuel as part of the solution.

Beginning January 1, 2023, homeowners can receive $600 when they install a new boiler or furnace that meets 2021 Energy Star® criteria and is rated by the manufacturer for use with renewable fuel blends of 20% or more. Starting January 1, 2027, new equipment must achieve a 90 Annual Fuel Utilization Efficiency (AFUE) and be rated for B50. All new Bioheat fuel home heating equipment by major manufacturers are rated for B20, and the next generation of systems are expected to be rated for pure B100.

The IRA also offers an additional credit of up to $2,000 for qualified home energy efficiency improvements, which can be taken annually through 2032. There are several efficiency measures you can take, allowing you to do your home improvements in stages, and taking a credit each year. You can even take this home credit and the upgrade credit in the same year. You should speak with your tax professional for advice on any tax credits you are considering.

New York State Clean Heating Fuel Tax Credit

New York knows that Bioheat® fuel is a clean heat – it’s in the name of the tax credit! New York offers a tax credit for using Bioheat® fuel blends between B6 and B20. The credit is the equivalent of a penny per percentage for every gallon of Bioheat® fuel purchased. For example, a homeowner using 900 gallons of B20 can get a state tax credit of $180.

More Rebates and Savings

Many local heating industry trade associations offer rebates of as much as $800 for homeowners upgrading old, inefficient heating systems to new, cleaner-burning Bioheat® fueled boilers or furnaces and storage tanks. Reporting shows that homeowners are increasing their system efficiency by 18% - 20% and cutting more than one ton of carbon emissions per year from their home’s environmental footprint. Talk to your local fuel dealer to find out more about local efficiency rebates.

Your fuel dealer may also be able to help you find low-interest financing to pay for your new equipment and other options available in your area.

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