FAQs
Click the question to reveal the answerWhat is a federal consumer tax credit?
It is a credit that taxpayers can claim on their federal income tax return at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay. It is not a tax deduction, which lowers your taxable income.
When would a qualifying purchase have to be made?
In 2009 or 2010.
Can I get a tax rebate on pellets?
At this time, the tax credit is only for biomass burning appliances.
Why is this a big deal?
It recognizes the popularity of biomass burning appliances, and emphasizes the government’s commitment to renewable energy and helping solve the country’s energy challenges.
Where can I learn more?
Visit Federal Tax Credits for Energy Efficiency at Energy Star
What is the maximum I can get back?
$1,500.
Can I retroactively apply it to last year’s purchase?
No.
Does it expire?
Yes. At this time, the tax credit is only valid for stoves purchased in 2009 or 2010.
Does the biomass stove credit combine with other tax incentives?
Yes. The tax credit is aggregate, or a total tax credit, which means it also includes the purchase of other energy-saving items such as windows, insulation and water heaters.
Biomass Appliance Tax Credit Information
The 2009 Economic Stimulus legislation signed into law on Feb. 17, 2009 by President Obama includes a 30 percent tax credit (up to $1,500) for homeowners who purchase a 75 percent efficient biomass burning stove in 2009 and 2010. This tax credit will help homeowners save on energy costs when they use renewable biomass fuels such as wood pellets.
The new tax credit takes effect immediately; however, the Internal Revenue Service hasn’t issued a full list of efficiency guidelines for manufactures to qualify their products. It’s best to check with your stove manufacturer to see if your heating appliance qualifies for the credit.