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Tax Credit for Wood and Pellet Stoves & Inserts - Tax Credit 2015-2016

2015-2016

Wood and Pellet Stove tax credit

There is no better time to purchase and install a wood or pellet stove or insert than now. Everything you need to know about the tax credit for 2015-2016 all in one place.

Wood Burning Stoves & Inserts | Pellet Burning Stoves & Inserts

As always, if you have any questions about the biomass stove tax credit or need help choosing your new stove, please contact us and speak with one of our CSIA Certfied Technicians.

Wood Burning Stoves & Inserts | Pellet Burning Stoves & Inserts

Tax Credit is eligible for 2015 and 2016 tax return

Tax Credit for purchasing a qualifying biomass stove for a credit up to $300 dollar-for-dollar

Read the official IRS tax code language here.

Document for IRS Guidance for claiming the tax credit here.

75% or above efficiency rated stoves are eligible

Q: What does the Biomass Stove Tax Credit Mean?

Answer: Biomass is a fancy word that means burning wood or pellet fuel. Taxpayers can claim this tax credit on their federal income tax form. The purpose of the tax credit is to encourage homeowners to make energy-conscious purchasing decisions that improve the energy efficiency of their home.

Q: How do I claim my wood or pellet stove tax credit?

Answer: For paper filing, you can use the IRS Form 5695. For electronic filing such as H&R Block or TurboTax, the credit will most likely be found under the Credits Section of the Federal part of the return. It will say something along the lines of "Residential energy credit or credit carry forward (Form 5695)".

Q: If I claimed this tax credit before, can I claim it a second time this year?

Answer: No, you cannot claim this tax credit again if you have already done so in previous years.

Q: It says the nonbusiness energy property credit is capped of at $500. Why can I only receive $300 for the stove or insert?

Answer: There are a number of different qualifying purchases under the nonbusiness energy property credit. The biomass stove portion qualifies for up to $300. Another example of a qualifying purchase is purchasing a qualifying boiler or furnace for a claim of up to $150. If you purchased and installed both in the same year, you would still be under the $500 cap off.

Q: Are wood or pellet stoves qualified if they are installed in a new or vacation home?

Answer: No, they are not qualified. The tax credit is for your existing principal residence.

Q: What appliances qualify for the tax credit (ex: inserts, EPA-certified wood burning fireplaces)?

Answer: Any qualifying biomass appliance that meets or exceeds the 75% efficiency rating qualifies for the tax credit. The IRS has not specifically stated that inserts are covered or aren't covered. However, manufacturers may choose to indicate that qualifying inserts are covered because of the EPA's routine of treating inserts and freestanding biomass stoves in a similar fashion.

Wood Burning Stoves & Inserts | Pellet Burning Stoves & Inserts

As always, if you have any questions about the biomass stove tax credit or need help choosing your new stove, please contact us and speak with one of our CSIA Certfied Technicians.