If you have not filed your taxes yet and use heating oil to heat your house in New York state, you may want to look at form IT-241. New York offers a “Clean Heating Fuel Credit” for up to 20 percent bio-fuel use in the heating oil used to heat your home or business.  If you live in Suffolk County, you most likely have been getting 5% bio-fuel (B5) in your heating oil.  Depending on the ingredients of the bio, the fuel has between 85 and 93 percent of the BTU’s as regular heating oil.  At least one large heating oil dealer is delivering 10 percent bio-fuel in their fuel oil.  The UL has only approve for up to B5 in heating oil components.  Below is a chart with the tax credit savings compared with the extra cost of lower BTU content.  Keep in mind that bio-fuels could cause breakdowns due to its increased thickness at lower temperatures; especially  for outside tanks.      


Heating Oil With 10 Percent Bio Vs. Straight Heating Oil


B10 BTU's per gallon


ULS Heating Oil BTU's per gallon


Gallons Delivered 2013


Heat Equivalent Gallons






Average Price Paid Per Gallon

$ 4.126


$ 4.126

2013 B10 Heating Oil Cost


Using Conventional Heating Oil






New York IT-241 Clean Fuel Credit

$ 84.87

Savings over 10% Bio Fuel

$ 35.02

Total Heating Oil Cost








Actual Tax Credit Savings

$ 49.85




There have been many regulations imposed on people for the expressed purpose of protecting the environment and reducing our dependence on foreign oil.  Some regulations make sense but others seem to have made matters worse.  Among the regulations that have done more damage than good are requirements to add MTBE and ethanol to gasoline.  MTBE was bad news and has since been banned.  Ethanol contains sugar which attracts water and makes the fuel corrosive which is not good for engines. Landscapers and boaters hate the stuff because of the damage caused to small engines by the short usable life.  Vehicle owners that fill up 85 percent ethanol (E85) risk voiding their warranties and will get about 25% miles per gallon less in their car due to the lower BTU content of ethanol.  The price of ethanol and other bio-fuels would be higher than straight gasoline or diesel were it not for the heavy subsidies offered by various governments.