BOSTON – Just a few months ago, Representative Keenan and the legislature passed the Heating Energy Assistance Act, allowing qualifying Massachusetts taxpayers to deduct up to $800 of their home heating fuel expenses from their taxable income when filing their state taxes. As of this week, however, fewer than 40 percent of those qualifying for the deduction have claimed it this filing season.

To date, according to the state’s Department of Revenue about 200,000 taxpayers have left unclaimed about $5 million in potential refunds. If this trend continues to the conclusion of the filing season, Massachusetts taxpayers could forgo up to $35 million in potential refunds.

“With the growing cost of utilities and home heating expenses, I hope all qualifying residents in Salem will take advantage of this tax break,” said Representative Keenan, “This very provision was one of the reasons I was such a strong proponent of this bill when it was before the House. Our low and middle income working families, young folks just starting out, and seniors on fixed incomes need help with their burgeoning heating costs. This deduction provides them that help.”

Any single taxpayer with an annual adjusted gross income of $50,000 or less qualifies for the deduction, as do any married joint filers or heads of household with an annual adjusted gross income of $75,000 or less. Deductions are only allowable for purchases of home heating oil, natural gas, and propane between November 1, 2005 and March 31, 2006. The legislature is currently considering a bill that would expand the deduction to filers who use wood or electricity for home heating purposes, too. The deduction is applicable for heating purchases made between November 1, 205 and December 31, 2005. Renters who meet the income limits may deduct 20 percent of their rent for November 2005 and December 2005. If you qualify and do not take the full $800 deduction in tax year 2005, you can take the remainder in tax year 2006 for heating purchases made up to March 31, 2006 at the latest.

Also available to taxpayers as a result of the legislation is a credit of up to $600 for energy efficiency improvements made by homeowners, such as new windows and insulation in buildings.

Filers who want more information about these deductions and credits should talk with their tax preparer or contact the state’s Department of Revenue at www.mass.gov/dor or 617-887-6367.