Let's Talk Wood Stove Tax Credits!

Let's Talk Wood Stove Tax Credits!

In this article, we discuss the Tax Credit for Modern Wood & Pellet Heating.

On some wood stoves or pellet stoves, you may see something along the lines of “This stove is eligible for the tax credit program for wood & pellet stoves.”

But what does that mean?

Well, let’s break that down!

So, what is a biomass stove?

When we talk about biomass stoves, we mean stoves that are fueled by wood, wood waste and residues, including wood pellets.

Unfortunately, no gas fueled stoves are applicable for this tax credit.

This credit is for 30% of the purchase and installation costs. Additionally, it has a $2,000 cap on the credit for a single year. It can be redeemed each year that this tax credit is available. It is currently slated to end at the end of 2033.

 

What You Need to Qualify:

  • Must be a heater that burns biomass as a fuel.
  • Must have a thermal efficiency rating of 75% or higher per the higher heating value (HHV) of the fuel.
  • Must be purchased and fully installed between January 1 and December 31, 2023.
  • Must be in an existing home and your principal residence.
  • New construction and rentals do not apply.
  • Houseboats, mobile homes, cooperative apartment, condominium, and a manufactured home can also qualify.
  • Must be in the United States.

Please note that the purchase and installation of venting and chimney can count towards the credit.

To claim this credit, you should keep your purchase receipt, including the costs of the appliance and the installation. You also need a manufacturer certificate stating that the stove qualifies for the credit and is at least 75% efficient HHV.

Check out additional information here

July 27, 2023
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