Bio-Heating Oil Tax Credit (Personal)

Maryland allows individuals and corporations to take an income tax credit of $0.03/gallon for purchases of biodiesel used for space heating or water heating. The maximum credit is $500 per year. It may not be refunded or carried over to subsequent years. In order to qualify for the tax credit, the heating oil must be at least 5% biodiesel sourced from U.S. Environmental Protection Agency (EPA) approved feedstocks or be accepted under the U.S. Renewable Fuel Standard. As originally enacted, the credit was only available for purchases made during the 2008 - 2012 tax years, but this was extended by 5 years through June 2018 by S.B. 959 in May 2011. This legislation also modified the definition of qualifying heating oil to insert the language described above pertaining to approved feedstocks and the U.S. Renewable Fuel Standard. Please see the program web site for an application and instructions on claiming this tax credit.