Tax Credits – What to Know
You’ve probably heard of the Tax Credit for Modern Wood & Pellet Heating. It’s also known as the Biomass Stoves Tax Credit.
So, what is it?
This is a special US tax credit that you can claim after purchasing and installing an approved biomass stove. You might be asking yourself, okay, but what IS a biomass stove? This phrasing typically refers to stoves that are fueled by wood, wood pellets, and other wood wastes and residues. Unfortunately, no gas fueled stoves are applicable for this tax credit.
How much is the tax credit and what all does it cover? – That’s a great question! The credit is for 30% of the purchase and installation costs. However, it does have a $2,000 cap on the credit for a single year and can be redeemed each year that this tax credit is available. Currently, It is slated to end at the end of 2033.
To qualify, the following criteria must be met:
- Heater that burns biomass as a fuel
- Thermal efficiency rating of 75% or higher per the higher heating value (HHV) of the fuel
- Purchased and fully installed between January 1 and December 31, 2023
- In an existing home and your principal residence. New construction and rentals do not apply.
- Houseboats, mobile homes, cooperative apartment, condominium, and manufactured homes can also qualify
- Be in the United States
The purchase and installation of venting and chimney can count towards the credit, so be sure to keep all your receipts for the costs of the appliance and the installation. You will also need a manufacturer certificate stating that the stove qualifies for the credit and is at least 75% efficient HHV.
Curious in our selection of Qualifying Stoves? You can check those out __here__ or get additional information at the Energy Star website. https://www.energystar.gov/about/federal_tax_credits/biomass_stoves
