Residential Energy Federal Credit for 2021, 2022 and 2023
In an effort to reduce the environmental impact of burning wood, the United States government has announced a new tax credit for wood stoves, pellet stoves and other wood burning appliances like fireplace inserts. This tax credit, which will be available for the 2023 tax year, is designed to make wood burning a more affordable option for homeowners while maximizing your tax return through your qualifying purchase. We will cover some basics of the energy tax credit that has just be introduced along with previous credits that you may already qualify for. The goal is to increase residential energy efficient property through providing consumers a break from the full cost of installing and purchasing a wood stove, pellet stove or fireplace insert.
Is there an energy tax credit for 2022?
Yes, in addition to the new 2023 credit, the CARES Act also extended a tax credit for the installation of energy-efficient products, such as insulation, windows, and doors. This tax credit was originally set to expire in 2017, but has been extended through 2032. Homeowners who purchased and installed these energy-efficient products in 2021 can receive a credit of up to 10% of the cost, up to $500.
The 2023 Energy Tax Credit
The 2023 tax credit is available to individuals who purchase and install energy-efficient wood stoves, fireplaces, and other wood-burning appliances. The credit is available for up to 30 percent of the cost of the appliance, up to $2,000. The appliances must be purchased and installed between January 1st, 2023 to December 31st, 2032. The cost and installation of chimney or venting pipe and any electric work done to connect appliances can also qualify for this tax credit. You can find more information about this tax credit in the U.S. Internal Revenue Code under Section 25 C.
As the push for renewable energy sources continues to grow, the 2023 tax credit for wood stoves and wood burning appliances is an important step in the right direction. The credit is designed to encourage the purchase and use of clean-burning, energy-efficient wood stoves, fireplaces, and other wood-burning appliances.
The primary aim of the 2023 tax credit is to promote the use of renewable energy sources, such as wood, as an alternative to traditional energy sources, such as fossil fuels. By providing a financial incentive for individuals to purchase and install wood stoves and other wood-burning appliances, this tax credit will help reduce greenhouse gas emissions by reducing the need for electricity and natural gas.
In addition to the tax credits, the government has also implemented other incentives for the purchase and installation of wood stoves and wood burning appliances. For example, some states have implemented grants and rebates for the purchase and installation of wood stoves and wood burning appliances. These grants and rebates can help make the purchase of a wood stove or wood burning appliance more affordable.
The 2023 tax credit for wood stoves and wood burning appliances is a great way for homeowners to save money on their energy bills and improve the efficiency of their homes. This tax credit can help homeowners reduce their energy costs and make their homes more efficient. Homeowners should take advantage of this tax credit and any other incentives that may be available to them in order to make the purchase and installation of a wood stove or wood burning appliance more affordable.
What qualifies for energy tax credit? Do pellet stoves qualify for tax credit?
The tax credit will apply to a variety of wood burning appliances such as wood stoves, wood furnaces, wood boilers, and pellet stoves. The credit is available for appliances purchased between January 1, 2021 and December 31, 2023.
As of 2021, wood stoves and wood burning appliances are eligible for a 2023 tax credit, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The tax credit allows homeowners who install wood stoves and wood burning appliances to receive a credit of up to $300. This credit is available for any wood-burning appliance that has a thermal efficiency rating of 75% or higher and was purchased and installed during the 2021 tax year.
List of Wood Burning Stoves from Northline Express that Qualify for the Tax Credit
Osburn Stoves - 950, 2000, 3500, Matrix and Inspire 2000
Osburn 950 Metallic Black EPA Wood Stove - OB00950
Osburn 2000 Metallic Black EPA Wood Stove with Blower - OB02015
Osburn 3500 Metallic Black EPA Wood Stove with Blower - OB03500
Osburn Matrix Wood Stove with Blower - OB02032
Osburn Inspire 2000 Wood Stove - OBO2042
MF Fire - Nova 2 Models
Nova 2 Wood Burning Stove - Black
Nova 2 Wood Burning Stove - Charcoal
Tax Credit for Fireplace Insert
Osburn Inserts - 2000 I, 3500 I , Matrix I, Matrix 1900, Inspire 2000 I
Osburn 2000 Black EPA Wood Stove Insert - OB02016
Osburn 3500 EPA Wood Burning Stove Insert - OB03510
Osburn Matrix 1900 Wood Stove Insert - OB01900
Osburn Inspire-I 2000 Wood Burning Fireplace Insert - OBO2045
Buck Stove - Model 91
Wood Stove with Gold Door - Model 91
Are wood pellets tax deductible?
No, this tax credit only applies to the appliance and the cost for installing that appliance if it qualifies.
What is a biomass stove?
Biomass stoves are used to heat living spaces using biomass fuel. Biomass fuels can range from wood pellets to other wood waste, grasses, crops, trees and fibers.
See more Information at HPBA and always consult with your Tax Specialist.