Tax Credits On High Efficiency Wood Stoves and Wood Inserts

Lopi Wood Burning Stove

Lopi Wood Burning Fireplace Insert

What is the Biomass Tax Credit?

The Biomass Tax Credit is part of the 2022 Inflation Reduction Act and offers consumers a 30% tax credit on the purchase and installation costs (including the appliance and any required venting) for qualifying high efficiency Wood-Burning Stoves or Wood-Burning Inserts.  The tax credit is capped at $2000 per year for appliances installed between Jan 1st 2023 and Dec 31st 2032. The credit must be claimed in the same tax year that the unit was bought and installed.   

What is Required to Qualify? 

hearth Stone Wood Burning Stove

The tax credit can be used on any wood heater that burns biomass, that is at least 75% efficient (as recorded in the EPA.gov Database), and that has a manufacturer’s certificate stating that the unit qualifies for the tax credit.  The tax credit is available to the principal owner of the property. To determine if a specific unit qualifies, please use the link below. You’ll select room heaters from the left-hand table, input the manufacturer name, and hit “Do Search” to see the units from that manufacturer that qualify.  Please note that in addition to achieving a 75% efficiency rate, the manufacturer must provide a certificate of compliance that is specific to the model.   

https://cfpub.epa.gov/oarweb/woodstove/index.cfm?fuseaction=app.searchResults

 Need Help Determining What Qualifies?

If you need help selecting a wood stove or insert that qualifies for this tax incentive, our expert staff is always ready to help!  Drop in or give us a call @ 859-231-0005 to see Central Kentucky’s best selection of wood-burning stoves and inserts