2022 Federal Tax Credit
We’re excited to share the news about this federal program as many of our customers may not have heard of it before. It’s a great opportunity to take advantage of before it expires. The majority of our wood and pellet models will qualify for this credit. But be sure to ask us regarding the exact model you’re thinking about – there are very specific rules for products to qualify so just check with us ahead of time to confirm.
Wood and Pellet Investment Tax Credit (ITC)
What is this new tax credit?
- Effective Dates: The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) came into effect on January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2023
- Credit Amount: Creates a new tax credit of 26 percent of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moves down to 22 percent of purchase and installation costs in 2023 (under Sec. 25D of the U.S. tax code)
- Qualifying Products: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel
- The EPA certified wood heater database may be referenced (not all products on the EPA list qualify. Look for products with efficiencies of at least 75 percent)
- A manufacturer certification statement attesting that a product qualifies can also be relied upon.