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Department of Taxation and Finance

Grade number 6 heating oil conversion credit (for tax years 2022 and 2023)

Who is eligible?

You are entitled to this refundable credit if you or your business:

  • paid costs for the conversion from grade number 6 heating oil fuel to biodiesel heating oil or a geothermal system at any building located in New York State outside of New York City before January 1, 2024; 
  • submitted an application to the New York State Energy Research and Development Authority (NYSERDA) describing both the conversion and costs to complete such conversion and obtained their approval; 
  • was not principally engaged in the generation or distribution of electricity, power, or energy; 
  • followed all environmental conservation laws and regulations; and
  • did not owe past due New York State taxes unless you are making payments and complying with an approved binding payment agreement with the Tax Department.

For more information about the application process, visit NYSERDA: No. 6 Heating Oil Conversion Tax Credit.

How much is the credit?

The credit is equal to 50% of the conversion costs approved by the NYSERDA, as indicated on the certificate issued. The credit amount cannot exceed $500,000 per facility.

Additional information

To learn about other New York State tax credits available to businesses, see Business incentives.

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