Bio heating oil tax credits

116 views
73 views

Published on

Businesses may claim a credit for each gallon of heating oil blended with bio diesel purchased for space or water heating. For any tax year, the credit allowed under this section may not exceed $500, or the state income tax for that tax year.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
116
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Bio heating oil tax credits

  1. 1. Bio-Heating Oil Tax Credit Businesses may claim a credit for each gallon of heating oil blended with biodiesel purchased for space or water heating. For any tax year, the credit allowed under this section may not exceed $500, or the state income tax for that tax year. The credit is available for the tax years beginning on or after January 1, 2008, but before January 1, 2018, and remains effective for 10 years, through June 30, 2018. The credit may be taken against corporate income tax or personal income tax. Sole proprietorships, corporations and pass through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit. To qualify for the credit: The purchase of bio-heating oil must be for the purpose of space and water heating. Bioheating oil means heating oil that contains at least 5% biodiesel and is: Derived from the U.S. Environmental Protection Agency (EPA) approved feedstocks; or Accepted under 42 U.S.C. 7545 (O) as per the U.S. EPA Renewable Fuel Standard 2 (RFS2) accompanying regulations under 40 C.F.R. Part 80 for diesel fuel replacement. How the credit is calculated: A business that receives an initial credit certificate from the Maryland Energy Administration (MEA) may claim a credit against the state income tax for a tax year in an amount equal to three cents ($0.03) for each gallon of bio–heating oil purchased for space or water heating. If the credit is more than the tax liability, the unused credit may not be carried forward to any future tax years. Documentation required: For taxable years beginning after December 31, 2012, this credit is available only with an electronically-filed return. A copy of the certification by the MEA must be included with the electronic return, and the. Form 500CR section of the return must be completed.
  2. 2. Contact: Maryland Energy Administration 60 West Street, Suite 300 Annapolis, MD 21401 Phone: 410-260-7655 E-mail: meainfo@energy.state.md.us McMillan Consulting 828A E. Baltimore St. Baltimore, MD 21202 Phone: 410-775-6226 Web: http://mcmillancos.com E-mail: info@mcmillancos.com McMillan Consulting is not affiliated with the state of Maryland. This document is for informational purposes. Contact us, the appropriate agency for this credit or your tax professional for further assistance. You can view Maryland's tax credits by visiting http://macadvises.net/mdtaxsignal.php and clicking on the MD Business Tax Credits link. We can send you a hard copy of this or any of our info sheets for Maryland tax credits.

×