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Save up to $2,000 (appliance plus installation) with the Biomass Tax Credit!
Good News for Eco-Friendly Heating! If you're considering one of our qualifying appliances for your home, you may be eligible for a significant tax credit, making your sustainable choice even more financially rewarding.
How much can you save?
- Save 30%: Qualify for a tax credit of thirty percent on the combined cost of purchase and installation.
- Up to $2,000: This is the maximum credit available for each project per year.
Which Products Qualify?
- Appliances that utilize wood, wood pellets, or other biomass fuels for heating.
- A thermal efficiency rating of at least 75% is required for eligibility.
Time Frame for Eligibility
- Valid for installations performed from January 1, 2023, to December 31, 2025.
- Update: Due to recent legislation passed by Congress, the Biomass Tax Credit is being phased out. To take advantage of this opportunity, eligible appliances must be both purchased and installed before December 31, 2025.
Yearly Credit Limits
- $3,200 total limit for various energy-efficient home improvements.
- $2,000 combined total limit specifically for biomass stoves/boilers and heat pumps.
Strategies to Maximize Your Tax Credits
- Spread out energy-saving improvements over multiple years to take advantage of the annual limits.
- Combine related upgrades within a year to fully utilize the available credits.
Who Can Benefit?
- Owners of principal residences within the U.S.
- Applicable to existing homes, including houses, houseboats, and mobile homes.
- Note: New constructions and rental properties are not eligible.
How to Qualify
- Select a heating appliance that heats via biomass fuel.
- Verify the stove is at least 75% efficient.
- Unsure about efficiency? Contact us directly for assistance.
- Install the appliance prior to the tax credit deadline.
What Costs Are Covered?
- The cost of the stove or insert.
- Installation expenses, such as venting, materials, and labor.
Claiming Your Credit.
- Receipts: Keep all purchase and installation receipts.
- Certification: Download the manufacturer’s certificate from our website. If you need assistance, we're here to help.
- Tax Advisor: We recommend consulting with a tax professional to understand the full benefits of the tax credit.
Important Note
This is a non-refundable tax credit, so it's essential to have enough tax liability against which the credit can be applied.
Ready to Enhance Your Home?
Invest in your comfort and the planet's future. Contact us to begin your eco-friendly upgrade today!
Additional Resources
For a comprehensive understanding of the biomass tax credit and to stay updated on the latest federal tax credit information, please visit the ENERGY STAR website.
For additional information and responses to commonly asked questions, our biomass tax credit FAQ page is also available here!
IRS Guidance on Biomass Stove Tax Credit
The IRS has released several advisory documents over time pertaining to the tax credit for biomass stoves (Section 25C). Although the Frequently Asked Questions (FAQs) provided here serve as a solid foundation, we highly recommend that you consult the IRS advisory document provided in the link below for comprehensive understanding.