January 08, 2020

The No-Nonsense Take on the Biomass Stove Tax Credit

After the flurry of legislative activity before the holidays in between family obligations, service calls, and taking care of business, you may be asking yourself: what just happened? Fear not, you are not alone. On December 20, 2019, President Trump signed into law legislation that extends the 25C tax credit (this is not a new tax credit), along with dozens of other tax credits, retroactively and forward for purchases made between January 1, 2018 and December 31, 2020.

Over the years, the tax credit’s requirements have occasionally changed, but for the past five years, they have remained the same. A qualifying biomass stove must be:

  • A stove that uses the burning of biomass fuel to heat your home or heat water for your home that has a thermal efficiency rating of at least 75%.
  • Biomass fuel is any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

The legislation that was enacted didn’t change any of this language or specify how the efficiency should be measured. You need only rely on a manufacturer certificate stating that a model is at least 75 percent efficient. If you are in a hurry, the EPA certified stoves list is a good place to start, but understand that some products with qualifying efficiencies may not be reflected on the list. Check with your manufacturers on which products qualify for the credit.

Some organizations, such as the Alliance for Green Heat, have shared inaccurate information that could lead to confusion. Read our response to their recent article. HPBA is the definitive source of information on the biomass stove tax credit for the hearth industry. We will continue to update our tax credit page with new information as we receive it.

Contact Rachel Feinstein (feinstein@hpba.org) if you have any questions.

 

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