Wood and Pellet Heater 2023-2032 Investment Tax Credit
Beginning in 2023, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems may be eligible to claim a 30% tax credit – capped at $2,000 annually – based on the full cost (purchase and installation) of the unit. The credit runs through December 31, 2032. Products must be claimed on the tax return year in which the product installation is complete.
What is this new tax credit?
- Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is effect on January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
- Credit Amount: Creates a new tax credit of 30 percent of the purchase and installation costs (with a $2,000 annual cap with no lifetime limit) for tax years 2023 through 2032.
- Qualifying Products: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel
- The EPA certified wood heater database may be referenced (not all products on the EPA list qualify. Look for products with efficiencies of at least 75 percent)
- A manufacturer certification statement attesting that a product qualifies can also be relied upon
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
Osburn 950 Orburn 2000 Osburn 3500 Matrix
Qualifying Wood Burning Inserts:
Regency I1500 Regency I2500 Hearthstone Clydesdale Osburn 2000-I
Osburn 3500-I Osburn Matrix-I Osburn Matrix 1900 Inspire 2000-I
Qualifying Wood Burning Fireplaces:
Astria Montecito Estate
Qualifying Pellet Stove and Pellet Insert:
Lopi AGP Lopi AGP Insert Lopi Deerfield
Enviro Maxx (EF2-1) Enviro EF2-1 Enviro Meridian (EFMFS-2)
Enviro Mini-2 Enviro P3-2
- You will claim your tax credit when you file your taxes on IRS form 5695 under "Residential Energy Efficient Property Credit." You will need your purchase receipt (showing cost of product and installation). You will also need a manufacturer certificate stating that the stove qualifies for the credit and is at least 75 percent efficient HHV.