Bioheat Tax Credit Program

Bioheat is a domestically produced, renewable fuel that can be manufactured from vegetable oils, animal fats, or recycled restaurant greases. Bioheat is safe and biodegradable, and its use significantly reduces greenhouse gas emissions and serious toxic air pollutants.

In 2007 Maryland passed a Bio-Heating Oil tax Credit. The statute provides for a $0.03/gallon tax credit up to $500 for individuals and corporations that purchase Bio-Heating Oil for the purpose of space and water heating. The statute defines Bio-Heating oil as at least 5% biodiesel derived from the US Enviornmental Protection Agency Approved Feedstocks or accepted under 42 U.S.C. 7545(o) as per the U.S. EPA Renewable Fuel Standard 2 (RFS2) and the accompanying regulations under 40 C.F.R. Part 80 for diesel fuel replacement.

The statute also limits tax credits to tax years 2008 through 2017.

Please fill out the application linked below electronically, print it, add attachments, sign it and mail it to the Maryland Energy Administration.

Please download an application here: APPLICATION

Having Trouble Downloading the Application? Tip: Try right-clicking on the link and save it to your desktop. Some internet browsers may have difficulty opening PDF Forms.

Questions about the program? Contact: Chris Rice at chris.rice@maryland.gov

Claiming Your Bioheat Tax Credit

For taxable year beginning after December 31, 2012, taxpayers must file their Maryland income tax return electronically (Form 500 for Corporations, Form 510 and Form 510 Schedule K-1 for Pass-Through Entities, and Form 502 or 505 for Individuals) in order to claim a Business Income Tax Credit.  They must complete the Business Tax Credit Form 500CR section of the electronic return and include a binary attachment or PDF of the certification received from the Maryland Energy Administration.   

A Maryland Form 510 Schedule K-1 provided by the pass-through entity to its members must separately state their shares of the credit. Individuals or entities must attach the credit certificate provided by MEA to Form 500CR submitted with their personal (Form 502), corporate (Form 500) or pass-through entity (Form 510) income tax returns.

Note: In general, 500CR is used by business taxpayers but individuals may use it to claim certain individual tax credits. The EVSE Tax Credit Program falls under this scenario. The attached one page credit certificate must be included with your electronic tax return for Comptroller processing.

Credit certificates must be attached to your tax return for Comptroller processing.

Filing questions should be directed to the Comptroller: http://www.marylandtaxes.com/default.shtml

Additional Information