Biomass-Burning Stove Tax Credit

No one looks forward to tax season with the up all night stress, wondering if you will break even or get audited, and the extra grey hair that somehow manages to pop up.  With New Years right around the corner people will start dragging out boxes of receipts to prepare for that dreaded day, April 15.  But what if you could get some extra money back this year?  Many homeowners are unaware that switching your fireplace unit can actually earn you up to $300 back on your next refund.  Below is some information on how this tax credit works, but the professionals at Top Hat Outdoor Living can also give you advice when it comes to picking the right unit for you and your home.

A pellet stove is an eco-friendly and energy-efficient option. It qualifies for the tax credit as well.

A pellet stove is an eco-friendly and energy-efficient option. It qualifies for the tax credit as well.

You’re probably wondering what this program is, because it probably falls into the too good to be true category.  The Biomass-Burning Stove Tax Credit was developed to influence people to make energy efficient purchases to improve the overall energy efficiency of their home.  This program does not apply to anyone building a new home or in a vacation home.  As mentioned, you can receive up to $300 by buying a qualifying biomass-burning stove or fireplace insert between January 1, 2012, and December 31, 2013.  You must have a receipt with purchase date to claim your credit, so if this is something you are considering, now is the time to buy.  To clarify, Biomass is when the stove uses wood or pellet fuel to operate.

Now that you are interested you need to know what qualifies.  And wood- or pellet-burning stove that meets the 75% efficiency rating will be deemed acceptable for the credit.  Manufacturers test these products to make sure they meet efficiency standards and come with the IRS certification when thy leave manufacturing.  This is important because Congress as part of the Energy Policy Act selected the 75% efficiency level.  Your local retailer can tell you what products they sell that meet standards.

Ok, you’re in!  But how do you ensure that you can collect your credit when tax time comes around?  First save the receipt from when you bought the unit.  You also need your manufacturer’s certification statement that contains their name and address, the identification of the class of qualified energy property, and the make and model number of the stove or insert.  For a full list of requirements, visit the Hearth, Patio, & Barbecue Association (HPBA) website to learn more.


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