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Vendors are not allowed to deduct sales tax from the EAP benefit. The full amount of the customer’s utility bill is subject to sales tax. The client’s EAP benefit, however, may pay sales tax. If the EAP benefit is not completely used, it should be rolled over to the next billing cycle and placed on the customer's account as a credit. At the end of the program year, credits will remain on the customer’s account. Funds are returned to IHCDA only if the client’s account is closed and the credit is due to the EAP benefit, or if an overpayment is discovered. To become a participating EAP vendor, all utility vendors must complete a Memorandum of Agreement (MOA) with IHCDA. These MOAs are signed every two (2) years. MOAs must be completed in their entirety and include payment (ACH (direct deposit)/check) information. Utility vendors cannot be paid if there is no MOA on file. All vendors are required to complete a W-9 tax form, in addition to the MOA. If the vendor receives payments totaling $600 or more, the vendor will receive an IRS tax form 1099 by January 31, detailing the total amount of payments received from EAP if the utility falls into one of the following categories: Individual, Partnership, Limited Liability Company (LLC), Limited Partnership (LP), or Estate. IHCDA facilitates the MOA directly with all existing vendors from the previous program year. Because the MOA is completed in a paperless format with digital signatures, LSPs should not provide a blank copy of the MOA to any new utility vendors or vendors who otherwise do not have an active MOA. LSPs should send an e-mail connecting the vendor representative to both eap@ihcda.in.gov and vendors@ihcda.in.gov so that the MOA process may be initiated. 12.13 Biofuel Vendors IHCDA does not enter into MOAs with wood, coal, pellet, and other biofuel vendors. LSPs may choose to enter into direct MOAs with biofuel vendors who deliver to clients in their service areas. Approved EAP clients who heat with one of the above biofuels may choose to receive a voucher to redeem with an approved vendor, or they may choose to receive a check for the value of their heating benefit in order to purchase biofuel on the free market. Memorandum of Agreement (MOA) If an LSP has one or more biofuel vendors who serve clients in its service area that they would like to contract with, they may draft an MOA. The MOA must, at a minimum, ensure that the vendor is complying with LIHEAP requirements as outlined in federal guidance and the state’s current EAP Intake and Operations Program Manual. The MOA should be drafted in consultation with the LSP’s legal counsel and should not replicate IHCDA’s existing MOA. The MOA is to be tailored to the specific needs and circumstances of the LSP. The MOA is to be submitted to IHCDA for review upon request. Vouchers