Winter is coming and you want to stay warm with a new pellet fireplace insert or wood stove. Now through 2032, save up to $2000 on a new installation for high efficiency stoves and fireplaces at The Stove Shop. Learn more about the Biomass Tax Credit.
The Biomass Stove Tax Credit Explained
Beginning in 2023, a significant incentive has been introduced for homeowners seeking to invest in highly efficient heating solutions. Thanks to the advocacy behind the Biomass Thermal Utilization (BTU) Act, consumers purchasing eligible wood or pellet stoves, may claim a 30% tax credit. This credit is applicable to the total cost, including purchase and installation, capped at $2,000 annually, and is available through December 31, 2032.
For further details on this initiative and how the tax credit might apply to you, visit the Hearth, Patio & Barbecue Association (HPBA) consumer information page.
What is this “wood stove tax credit”?
The Biomass Tax Credit is a great way to save money depending on your tax situation. What is the Biomass Tax Credit? Found under section 25(C) of the tax code as modified by the “Inflation Reduction Act of 2022,” this new credit covers 30% of the purchase and installation costs (up to a $2,000 annual credit) for tax years 2023 through 2032.
You’ll need this to claim your credit. This is a non-refundable tax credit. Please consult your tax advisor prior to purchase to see what this tax credit means for you. To qualify, the stove or insert must burn a biomass fuel, heat air or water and be at least 75% efficient per the higher heating value (HHV) of the fuel. Installations at primary or secondary residencies can be claimed, and both the purchase and installation costs (venting and related materials, onsite labor) can be included in your total cost.
Qualifying Products – Wood Stoves, Pellet Inserts & Pellet Stoves
Vermont Castings has long been synonymous with quality and efficiency in home heating. Their wood stoves not only meet but exceed the 75% efficiency mark required for the tax credit. This makes them an ideal choice for anyone looking to upgrade their home heating system while benefiting from the tax credit. To explore which Vermont Castings models qualify, check out their efficiency listings.
Harman and Quadra-Fire provide quality pellet and wood burning appliances, many of which quality for the tax credit. Check out which products at The Stove Shop quality for the tax credit here.
Installation Matters – Plan Ahead
It’s important to remember that the credit can be claimed in the year the qualifying product is installed. For example, a stove purchased in 2021 but installed in 2022 qualifies for the credit on your 2022 tax return. This distinction underscores the importance of planning your installation timeline to maximize your eligibility for the credit.
Choose NFI Certified Professionals
When installing a new wood stove in your home make sure you are choosing a professional certified by the National Fireplace Institute (NFI). Safe installation of fire in your home must be the number priority. Make sure you get a level 2 chimney inspection (report of chimney condition with pictures) before installing anything in an existing fireplace.
“Do I Qualify for the Tax Credit?” – Depends on Your Tax Situation
While the tax credit offers a substantial incentive, it’s crucial to consult with a tax professional regarding your specific tax situation. The benefit you receive from the tax credit can vary based on your overall tax liability. For those with lower tax obligations, the impact of the credit may differ.
For comprehensive information on how to claim the credit, refer to the IRS’s draft forms and instructions for Residential Energy Credits.
Why Choose The Stove Shop Fireplace Experts?
At The Stove Shop, we pride ourselves on our decades-long history of helping customers find the perfect heating solutions for their homes. Our expertise in installing wood stoves since 1977 positions us uniquely to assist you in choosing and installing a wood stove that not only meets your heating needs but also qualifies for the tax credit, ensuring both warmth and savings.
Give us a call 610-935-9334, if you would like to find out the cost of installing a wood stove or pellet fireplace insert in your home from The Stove Shop.
“Investing in a Vermont Castings wood stove is more than just a purchase—it’s a step towards a more efficient, comfortable, and cost-effective home environment. With the added benefit of the new tax credit, there’s never been a better time to explore how a wood stove can transform your home during winter. I love my Vermont Castings Encore wood stove. It is my favorite appliance in the house. My grandfather started the store by in 1977 as the first Vermont Castings dealer in Pennsylvania. We are proud to sell the classic American-made wood stove.” – Patrick Ryan 3rd generation Owner, The Stove Shop
For more details on our range of wood, pellet and gas stoves, visit The Stove Shop. Let us help you stay warm and save money this winter and beyond. We offer everything from gas fireplaces to wood stoves and pellet fireplace inserts or linear electric fireplaces. Serving Chester county, Delaware county & Montgomery county.
Tax Credit Resources – Learn More about the Biomass Tax Credit:
SAVE up to $2000 on a new wood stove, pellet stove or pellet fireplace insert with the biomass tax credit.
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