Wood and Pellet Heater 2021-2023 Investment Tax Credit
Beginning in 2021, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems will be able to claim a credit that is uncapped and based on the full cost (purchase and installation) of the unit.
The credit will remain at 26% through 2021 and 2022, and then step down to 22% in 2023.
To qualify, the stove or insert must burn biomass (Wood or Pellets) as a fuel, heat air or water, and be at least 75 percent efficient per the higher heating value (HHV) of the fuel. Installations at primary or secondary residencies can be claimed, and both the purchase and installation costs (venting and related materials, onsite labor) can be included in your total cost.
Purchased a qualifying stove in a previous tax year?If you made a qualifying purchase and installation in a previous tax year, before January 1,2021, and you want to claim a credit, you likely will have to file an amended return to claim to older Sec. 25(C) tax credit. The new Sec. 25(D) credit is not retroactive. It is only for purchases and installations made after December 31, 2020. You can file an amended return for previous tax years using IRS form 1040X
Qualifying Wood Stoves :
Regency F1500 Regency F2500 Regency F3500 Regency F5200
Jotul F 500 CF V3 Jotul F 500 V3
Morso 6100 B Series Morso 2B Morso 7110 B
Hearthstone Mansfield Hearthstone Heritage Hearthstone Green Mountain 40
Hearthstone Manchester Hearthstone Craftsbury Hearthstone Green Mountain 60
Hearthstone Bari Hearthstone Shelburne Hearthstone Green Mountain 80
Qualifying Wood Inserts :
Regency I1500 Regency I2500 Hearthstone Clydesdale
Qualifying Pellet Stove and Pellet Insert :
Lopi AGP Lopi AGP Insert Lopi Deerfield Enviro Maxx