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.
*2012 applications must be received by MEA by close of business March 1, 2012.
Please down load an application here: APPLICATION
Claiming Your Bioheat Tax Credit
Form 500CR must be completed and submitted with the income tax return (Form 502). If the business is a pass-through entity, Form 500CR must be prepared for the pass-through entity and submitted with the entity's income tax return (Form 510). A modified federal 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 this statement to the Form 500CR submitted with their personal (Form 502), corporate (Form 500) or pass-through entity (Form 510) income tax returns.
Please click on the following link to access this form: http://forms.marylandtaxes.com/current_forms/500CR.pdf
*Note: In general 500CR is used as a business tax form but individuals may use it to claim certain individual tax credits. The Bioheat Tax Credit falls under this scenario.
Credit Certificates must be attached to your tax return for Comptroller processing.
Questions about the program? Contact: Chris Rice at crice@energy.state.md.us