April 01, 2010
ENERGY-EFFICIENT WOOD STOVES AND FIREPLACE INSERTS BRING BIG TAX BENEFITS
Consumers Earn up to a $1,500 Tax Credit When Purchasing a Clean, Green Heating Appliance
Arlington, VA (April 1, 2010) – As the tax deadline approaches, the Hearth, Patio & Barbecue Association (HPBA) reminds homeowners of the opportunity to save big when installing a new wood or pellet stove or fireplace insert. A federal consumer tax credit designed to encourage energy-conscious purchases covers 30 percent of the cost of clean, fuel efficient stoves and fireplace inserts, up to a maximum credit of $1,500. Those who installed a qualifying stove or fireplace insert in 2009 can claim the credit on this year’s returns and for those looking to save on next year’s taxes, the credit extends through 2010.
“Tax season has arrived, and many families are looking for ways to maximize their returns and reduce their tax bills,” said Jack Goldman, president & CEO of the Hearth, Patio & Barbecue Association. “Fireplace inserts and stoves have long been a great option for saving money because they cut energy costs and add value to homes. With this new tax credit, the incentive has never been greater.”
A wide variety of clean-burning wood and pellet stoves and fireplace inserts qualify for the credit, including several Vesta Award winners and finalists recently showcased at the industry’s annual indoor-outdoor living trade show, HPBExpo.
How it Works
The tax credit – which can lower your tax bill on a dollar-for-dollar basis – applies to stoves or fireplace inserts purchased between January 1, 2009 and December 31, 2010 that:
- Burn a biomass fuel source like wood or renewable pellets
- Will be installed in an existing principal residence, not a newly constructed house or vacation home
- Meet a minimum 75% efficiency rating as certified by the manufacturer
Purchasers of qualifying stoves and inserts can claim the credit on their federal tax return using IRS Form 5695: Residential Energy Credits. These consumers should save their receipt and the manufacturer’s certification that states the appliance they purchased is eligible. Installation and venting costs are included in calculating the credit’s total value, as long as professional installation is required for the proper and safe operation of the stove.
Get the Facts
To help consumers learn more and find the right stove or fireplace insert for their home, HPBA developed a special website – www.hpba.org/taxcredit – with useful tools that include:
- Tax Credit FAQ. Get answers to commonly asked questions about how the credit works, what qualifies and how much you can save.
- Wood vs. Pellet. Learn the difference between appliances that use these two efficient and eco-friendly fuel sources.
- Fuel Efficiency Calculator. Home experts estimate that stoves and inserts can reduce annual heating costs by 20 to 40 percent. To help consumers evaluate their options, HPBA developed an online calculator that approximates annual savings depending on your home’s current heating source and the fuel you select. The fuel calculator is also available as a widget that can be embedded on your own website.
- Specialty Retailer Locator. HPBA members provide the expertise, personal service and product selection consumers need to make the right decision. Find the store closest to you by entering your zip code in HPBA’s retailer locator.
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About Hearth, Patio & Barbecue Association (HPBA)
The Hearth, Patio & Barbecue Association based in Arlington, VA, is the North American industry association for manufacturers, retailers, distributors, representatives, service firms and allied associates for all types of hearth, barbecue and patio appliances, fuels and accessories. The association provides professional member services and industry support in education, statistics, government relations, marketing, advertising and consumer education. There are more than 2,500 members in the HPBA. For more information, please visit www.hpba.org.