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 do Consumers Need to Know?
- Effective Dates: The Inflation Reduction Act of 2022 changed the Wood and Pellet Heater Tax Credit for calendar years 2023-2032.
- Credit Amount: Creates a 30 percent of purchase and installation costs beginning in 2023, with a $2,000 cap on the credit for any one year. Can be redeemed each year.
- 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.
- Purchased and fully installed in the year that the credit is taken.
- Purchase and installation costs of appliance and venting/chimney can count towards the credit.
- What Paperwork to Keep for Tax Records: Purchase receipt, including costs of product & installation. Also, the manufacturer certificate stating that the stove qualifies for the credit and is at least 75 percent efficient HHV.
For details regarding this tax credit, including consumer forms and resources, please visit:
https://www.hpba.org/Advocacy/Biomass-Stove-Tax-Credit
