Form IT-241: Claim for Clean Heating Fuel Credit (Tax Year 2025)

Form IT-241 is how New York State homeowners and certain businesses claim the Clean Heating Fuel Credit on their state tax return. This credit rewards taxpayers who purchase bioheat — a blend of biodiesel and conventional home heating oil — for residential space heating or water heating purposes. If you switched to a greener heating fuel blend during the tax year, this form is what puts money back in your pocket.

The credit is issued by the New York State Department of Taxation and Finance and applies specifically to bioheat used in a residence. It doesn’t cover fuel used for business heating in most cases, though there are exceptions for certain agricultural and commercial uses that the instructions spell out in detail. The core idea is simple: New York wants to incentivize cleaner-burning heating fuel, and Form IT-241 is the mechanism for claiming that incentive.

Who Needs to File Form IT-241

You’ll need this form if you purchased bioheat for heating your primary or secondary residence in New York State during 2025. The fuel must meet the state’s definition of bioheat, meaning it contains a specified minimum percentage of biodiesel blended with conventional heating oil. Your fuel supplier’s invoice should indicate the biodiesel percentage (B5, B20, B100, etc.), which is essential information you’ll need when completing the form.

Homeowners are the most common filers, but renters generally don’t qualify since the credit is tied to the property owner purchasing the fuel. Landlords who supply heating fuel to tenants in a building they own may also be eligible, depending on the specifics of the arrangement and how the property is used.

When and How the Credit Applies

The credit amount is calculated based on the number of gallons of bioheat purchased multiplied by the biodiesel percentage in the blend, up to a set cap per year. This means someone who buys B20 (20% biodiesel) gets a smaller per-gallon credit than someone using B100, but the actual credit will depend on total gallons purchased across the heating season.

To claim the credit, you attach Form IT-241 to your New York State personal income tax return. The form requires you to report the total gallons of bioheat purchased, the biodiesel percentage for each purchase, and supporting documentation from your fuel invoices. Keeping organized receipts throughout the heating season makes this process considerably easier come filing time, since the state may request proof of purchase if your return is reviewed.

Filling Out Form IT-241

The form itself is straightforward compared to some of New York’s other credit forms. You’ll enter basic identifying information, then move into the calculation section where you list your bioheat purchases and their respective biodiesel percentages. The form walks you through multiplying gallons by percentage to arrive at your credit amount, which then transfers to your main tax return.

Because this is a fillable PDF (AcroForm), you can complete it directly on your computer using Adobe Acrobat Reader or a similar PDF program before printing it for filing or attaching it electronically if you’re filing through approved tax software. Filling it in digitally reduces errors and keeps your entries legible, which matters if the Department of Taxation needs to review your submission.

If you’re also claiming other New York State credits related to property improvements or conservation, it’s worth reviewing similar forms to understand how the state structures these incentive programs. For instance, homeowners investing in historic property upgrades might look into Form IT-237 for historic homeownership rehabilitation credits, while those with larger-scale historic property projects may need Form IT-238 for rehabilitation of historic properties. Landowners interested in conservation-related tax benefits should also check out Form IT-242 for the conservation easement tax credit.

Before submitting, double-check that your fuel supplier’s documentation clearly states the biodiesel blend percentage, since missing or unclear invoices are the most common reason these claims get delayed or denied. Keep copies of everything for your records in case the state requests verification after you file.