TheBiomass Tax Credit program ends in December, and it does not look like there will be another tax credit available anytime soon. Homeowners who have been considering the purchase of an energy-efficient wood-burning or pellet-burning stove or fireplace insert may want to purchase a stove and have it installed before the end of the year in order to take the credit on their 2013 taxes.
The Biomass Tax Credit Program offers a dollar for dollar tax credit of $300, with a $500 lifetime cap. Any stove in this category must have at least a 75% efficiency rating and been installed in the homeowner's primary residence. Rental or vacation homes are not eligible. These stoves can be fueled by renewable and sustainable energy sources like wood, pellets, corn, switch grass, cherry pits, and saw dust. The stoves must be EPA approved and U.L. Listed.
What is Biomass? Biomass is defined as fuel powered from renewable and sustainable sources of energy. These include, but aren't limited to, wood, pellets, corn, and switch grass. Products that burn carbon neutral waste products (like cherry pits and sawdust) also count toward this tax credit.
An EPA approved stove or insert will lower energy bills and qualify you for savings on Federal income taxes this year.
The biomass tax credit is applied after all deductions are made and is deducted off the bottom line of a Federal tax return. For the purpose of accuracy, keep exact records of your purchase – you must provide the manufacturer’s certification and a sales receipt indicating a covered date of purchase. Simply give your receipt and certificate to your tax accountant. Please consult a tax professional with any questions.
Some of the manufacturers who offer eligible stoves are Regency, Hearthstone, Hampton, Vermont Castings, U.S. Stove, Timberwolf, Eco-Aire, Rika, Osburn, and Napoleon. Most jurisdictions require a permit and a licensed installer to install the stove or insert. To find a National Fireplace Certified Wood-Burning Specialist or Pellet Specialist to install the stove visit www.nficertified.org. To find a professional CSIA Certified Chimney Sweep to maintain the stove visit www.csia.org. Many Certified Sweeps also sell and install wood-stoves. To find a list of hearth retailers visit the Hearth, Patio, and Barbecue Association website at www.hpba.org.