Biomass Stove Tax Credit

This tax credit is valid only for the purchase and installation of a qualifying biomass stove made before December 31, 2017. And, consumers would claim the tax credit in the year in which it was installed completely.

This federal tax credit is an opportunity for the hearth industry to promote energy-conscious purchases to consumers that improve the energy efficiency of their home. It is a $300 dollar-for-dollar tax credit for purchasing a qualifying biomass-burning stove before December 31, 2017. Biomass simply means the stove uses wood or pellet fuel.

Any biomass appliance that meets or exceeds an energy efficiency rating of 75 percent qualifies for this credit. This credit does not cover open wood-burning fireplaces, hydronic heaters, wood warm air furnaces, and anything else that is not a wood or pellet stove. However, visit your local specialty retailer who can explain which products qualify for the tax credit.

A manufacturer's certification statement must contain the following information: 

• The name and address of the manufacturer.
• Identification of the class of qualified energy property (Biomass-Burning Stove) in which the property is included.
• The make, model number and any other appropriate identifiers of the stove.
• A statement that the product is an eligible qualified energy property.
• A manufacturer's certification statement must contain a declaration, signed by a person currently authorized to bind the manufacturer in these matters, in the following form: "Under penalties of perjury, I declare that I have examined this certification statement, and to the best of my knowledge and belief, the facts are true, correct, and complete."

No, there is a $500 lifetime cap per consumer. That said, if consumers are in your store looking to update their appliance, there may be stove accessories that you could recommend to enhance their experience (even if they aren't eligible for the tax credit).

The 75 percent efficiency number was originally designated by the U.S. Congress in 2008 as part of the Emergency Economic Stabilization Act and was used again for this tax credit.

No, there is no "Buy America" component to this tax credit.

Retailers and consumers must keep exact records of any sale or purchase. Retailers should provide a consumer with the manufacturer's certification statement for the specific product model purchased. A consumer may rely on a manufacturer's certification statement that their products are qualified energy property. A taxpayer is not required to attach the certification statement to the return on which the credit is claimed. A consumer claiming a credit for the qualified non-business energy property should retain the certification statement as part of the taxpayer's records.

Manufacturers should make this certification document available to consumers on their website, in the product packaging, or in some other easily accessible manner.