Grade number 6 heating oil conversion credit (Articles 9-A and 22)

For tax years beginning on or after January 1, 2022, a new refundable credit will be available to taxpayers meeting certain eligibility requirements for the costs incurred to convert from grade number 6 heating oil usage to biodiesel heating fuel or a geothermal system.

The credit is equal to 50% of the conversion costs paid for by the taxpayer on or after January 1, 2022 , and before July 1, 2023, for all of their buildings located at a facility regulated by New York State department of environmental conservation. The credit amount cannot exceed $500,000 per facility.

To be eligible, a business must:

incur expenses for the conversion from grade no. 6 heating oil fuel to biodiesel heating oil or a geothermal system at any building located in New York State, outside New York City;

submit an application to and obtain approval from the New York State Energy Research and Development Authority (NYSERDA) describing the conversion and costs to complete such conversion;

not be principally engaged in the generation or distribution of electricity, power or energy;

be in compliance with all environmental conservation laws and regulations; and

not owe past due state taxes unless the business entity is making payments and complying with an approved binding payment agreement entered into with the taxing authority.

For more information, see Grade Number 6 Heating Oil Conversion credit .

[Part I of Chapter 59 of the Laws of 2022; Tax Law §§ 47, 210-B(58) and 606(nnn)]