Bio-Heating Oil Tax Credit (Personal)

December 17, 2020


Maryland allows individuals and corporations to take an income tax credit of $0.03/gallon for purchases of biodiesel used for space heating or water heating. The maximum credit is $500 per year. It may not be refunded or carried over to subsequent years. In order to qualify for the tax credit, the heating oil must be at least 5% biodiesel sourced from U.S. Environmental Protection Agency (EPA) approved feedstocks or be accepted under the U.S. Renewable Fuel Standard. As originally enacted, the credit was only available for purchases made during the 2008 - 2012 tax years, but this was extended by 5 years through June 2018 by S.B. 959 in May 2011. This legislation also modified the definition of qualifying heating oil to insert the language described above pertaining to approved feedstocks and the U.S. Renewable Fuel Standard.

Please see the program web site for an application and instructions on claiming this tax credit.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maryland
Incentive Type: Personal Tax Credit
Web Site:
Administrator: Maryland Energy Administration
Start Date: 01/01/2008
Eligible Renewable/Other Technologies:
Incentive Amount: $0.03/gallon of biodiesel
Maximum Incentive: $500 per year
Carryover Provisions: Credit cannot be carried over


Name: Md. TAX-GENERAL Code Ann. § 10-727
Date Enacted: 04/24/2008 (subsequently amended)
Effective Date: 01/01/2008
Expiration Date: 06/30/2018


Name: Information Specialist - Comptroller of Maryland
Annapolis MD 21411-0001
Phone: (410) 260-7980

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.