Article: 50503

Overview 

The Clean Heating Fuel Credit is a nonrefundable income tax credit available to New York residents who purchase bioheating fuel to heat their residential property located in New York. The credit is designed to encourage the use of cleaner, renewable fuel sources for home heating. 

To claim this credit, you must complete Form IT-241 – Claim for Clean Heating Fuel Credit, and submit it with your Form IT-201 (resident return). 

Who is Eligible? 

You may claim the Clean Heating Fuel Credit if: 

• You paid for bioheating fuel used to heat your primary residence located in New York State during the tax year. 

• The bioheating fuel contains at least 6% biodiesel (B6 or higher). 

• You have proof of purchase from your fuel provider (e.g., delivery tickets or invoices). 

• The fuel was used exclusively for heating purposes, not for motor fuel or off-site use. 

Note: This credit is nonrefundable, but it may reduce your tax liability to zero. 

Credit Amount 

The credit equals $0.01 per gallon for each percentage point of biodiesel in the fuel. For example: 

• B10 (10% biodiesel) = $0.10 per gallon credit 

• B20 = $0.20 per gallon credit 

Multiply the credit rate by the number of gallons purchased and used for home heating. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select New York. 

4. Click on the IT Credits 100 – 200 Series tab. 

5. Select IT-241 – Clean Heating Fuel Credit to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see:  

• 2024 New York State Instructions for Form IT-201 – Full-Year Resident Return  

• 2024 NYS IT-241 Instructions – Clean Heating Fuel Credit (PDF)