Tax Credits On High Efficiency Wood Stoves and Wood Inserts
What is the Biomass Tax Credit?
The Biomass Tax Credit is part of the Energy Efficient Home Improvement Credit in the 2022 Inflation Reduction Act. It 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 $2,000 per year for qualifying appliances installed between Jan 1, 2023 and Dec 31, 2025 (unless the program is extended). The credit must be claimed in the same tax year that the unit is bought and installed.
What is Required to Qualify?
The tax credit can be used on any wood heater that:
Burns biomass
Is at least 75% efficient (as listed in the EPA.gov database)
Has a manufacturer’s certificate stating that the model qualifies for the tax credit
The tax credit is available only to the principal owner of the property.
To determine if a specific unit qualifies, please use the link below. Select Room Heaters from the left-hand table, input the manufacturer name, and click “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 specific to the model.
EPA Database:
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 at 2320 Palumbo Dr. Suite 150 Lexington, KY or give us a call at 859-231-0005 to see Central Kentucky’s best selection of wood-burning stoves and inserts.
