� FEDERAL TAX CREDITS FOR BIO-FUEL POWERED HEATING APPLIANCES
With the implementation of the Inflation Reduction Act of 2022 , Congress has created a $ 600 consumer income tax credit for the installation of renewable fuels compatible liquid fuel appliances , NORA explains in a news release :
With this act , low-carbon liquid fuel heating appliances have been identified as a viable path for GHG reductions .
The heating appliance qualifies by meeting three conditions :
• Placed into service after December 31 , 2022
• Meets or exceeds Energy Star 2021 ( boilers and furnaces ) efficiency criteria
• Rated by the manufacturer for use with fuel blends at least 20 % of the volume of which consists of an eligible fuel ( eligible fuel : biodiesel or renewable diesel )
If your liquid fuel fired appliances meet these qualifications , homeowners can claim the credit using IRS Form 5695 Residential Energy Credits . Form 5926 is being updated by the IRS and should be available early in 2023 .
About the tax credits , Michael Devine , NORA President said , “ The Inflation Reduction Act of 2022 is perhaps the most important environmental legislation since the Clean Air Act more than fifty years ago . The inclusion of biofuel powered liquid fuel appliances for homeowner Federal tax credits , displays validation by Congress for the inclusion of these appliances in our pursuit to eliminate carbon emissions from homes . This industry took up the quest many years ago with the introduction of the Advanced Biofuel -biodiesel , into home heating fuel . Today , millions of homes are using biodiesel in ever increasing blends .”
Of course , the homeowner needs to be made aware of the credit ’ s availability . NORA suggests that manufacturers include this information to their supply chain , installers and the homeowner via product marketing , installation manuals and perhaps consumer literature . Retail installers also need to inform their customers of this opportunity to reduce their carbon impact while saving money .
The inclusion of this credit in the tax code is the result of a coordinated effort by many in the liquid fuel heating industry , particularly the National Energy & Fuels Institute with consultation from the Oilheat Manufacturers Association
NORA was authorized by Congress in 2000 to generate funding , from within the industry , allowing the Oilheating industry to provide more efficient and more reliable heat and hot water to
Photo by Kris Christiaens
22 FEBRUARY 2023 | FUEL OIL NEWS | www . fueloilnews . com