BIOMASS TAX CREDIT
Starting in 2021, consumers purchasing wood or pellet heaters with thermal efficiency ratings of 75% measured by the higher heat value (HHV) of the fuel will be able to claim a 26% tax credit.
Overview and Inclusions
At the end of 2020, a relief package was passed to expand renewable energy provisions for homeowners in 2021. This included a tax credit for biomass heaters in section 25(D) of the IRS tax code. It allows homeowners to claim a 26% credit on the full cost of installed wood or pellet heaters with an efficiency rating of at least 75% HHV.
The maximum 26% credit is in place for all paid-in-full, completed installations through 2022.
There is no cap on the amount of the tax credit for eligible units that meet the efficiency requirements.
Includes the unit purchase price with labor costs and installation, such as venting and floor protection.
Heating is a major home investment. It’s important to select the right unit for the needs of the space. A credit-qualifying heater should only be considered as an option if it truly fits the needs of your home.
In order for a heating unit to be eligible the credit stipulates that it needs to be 75% HHV efficient or above. The units listed below have been confirmed by our manufacturers to meet this requirement. A certificate of qualification issued for each unit is available to download for your records. Most importantly, these stoves and inserts are recommended by our shop for their construction quality, heat output and reliability.
Our shop provides a detailed receipt reflecting payment in full and a manufacturer’s certificate of qualification that is available to download from the list of qualifying units above. We encourage customers to check with a tax professional to confirm their project’s tax credit eligibility and to adhere to required tax filing procedures and regulations.
A detailed receipt itemizing the unit model, venting and installation costs and marking payment in full.
Manufacturers have issued a certificate of qualification for all units our shop recommends.