$1,500 Tax Credit for U.S. Homeowners who purchase a
qualifying
wood or pellet stove, fireplace or fireplace insert
Quick Overview
Purchase a 75% efficient wood or pellet
stove/insert for your primary residence and you will receive a 30% tax credit up to $1500 for the cost of the stove, venting,
hearth pads and installation. Complete details below.
June 2, 2009
The American Recovery and Reinvestment Act of 2009 (Recovery Act) signed into law on
February 17, 2009, includes a 30% consumer tax credit (up to $1,500) for the purchase of 75%-efficient bio-mass burning stoves
(i.e. wood and pellets) and can be used towards the stove, venting, hearthpads and installation costs for the 2009 taxable
year and again in 2010.
The new tax credit begins immediately and applies to qualifying bio-mass burning stoves already purchased
in 2009; the Internal Revenue Service (IRS) has issued a full list of efficiency guidelines regarding which products qualify.
Why is this Happening?|
The Recovery Act is an unprecedented effort to
jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so
our country can thrive in the 21st century. The Recovery Act targets investments towards key areas that will save or create
good jobs immediately, while also laying the groundwork for long-term economic growth – including $43 billion to “Revive
the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy
capacity” – which offers a 30% consumer tax credit (up to $1,500) for the purchase of 75%-efficient bio-mass burning
stoves (i.e. wood and pellets) and can be used towards the stove, venting, hearthpads and installation costs.
What Exactly is a Tax Credit?
Consumers claim the credit on their federal
income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has
to pay, dollar-for-dollar; whereas, tax deductions simply lower your taxable income. Please consult your tax advisor for more
information.
More Specifics:
• To be considered, a stove must use the burning of biomass fuel to heat a dwelling unit or to
heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75% as measured using a lower
heating value;
• Installation is covered, as long as it is a requirement for the stove's proper and safe functioning;
• This consumer tax credit is 30% (up to $1500) for the purchase and installation of a 75% efficient
stove, and is available in both 2009 and 2010;
• The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items.
For instance, if a consumer claims $900 on a new stove, then he will have $600 to purchase additional energy saving products
in the same tax year;
• If a taxpayer uses the entire $1500 tax credit on a competing product then they cannot use it for
a biomass stove in that same tax year;
• This credit applies only to existing principle residences;
• Manufacturers must provide a certificate of qualification for each product as required in the guidance
which can be obtained for the customer to use;
• Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification
is not required to be attached to the tax return;
• Prior purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers
a certificate of qualification for the product;
