Biomass Fuel Credit

The most likely thing is a credit for federal excise tax paid on the fuel. Most of the other credits seem related to the purchase of the heating equipment itself (not fuel), production of biomass fuels, or use in a trade or business (not residential).

There does not appear to be one single IRS pub or table which lays this all out, but I'd love to learn otherwise. Compounding the murkiness is that certain credits have come and gone and come back again over the last few years with each major new tax law, it seems.

And of course your state may have its own credits. Did your oil company at least specify whether or not it was a federal credit?

-Mark Bole

I don't know, but I have an oil furnace. So what is biomass fuel and why would I want to burn it?

Dick