The Benefits of Biomass Tax Credit for Wood and Pellet Stoves

 

High-efficiency wood-burning insert by Regency

By Marge Padgitt

Homeowners planning to install an alternative heating appliance should review the Biomass Tax Credit that provides an incentive for homeowners to install highly efficient wood and pellet stoves. This tax credit, which runs from January 1st, 2023, to December 31st, 2032, allows eligible taxpayers to receive a credit of 30% of the purchase and installation costs, up to $2,000 annually.

The Biomass Tax Credit, enacted as part of the Inflation Reduction Act, was implemented to promote the adoption of more sustainable and efficient heating options in residential properties. This tax credit is applicable to wood and pellet stoves that meet specific criteria. To qualify for the credit, the stoves must have a thermal efficiency of at least 75% per the higher heating value (HHV) of the fuel, and be listed as an approved appliance. The tax credit is available for purchases and installations completed between January 1, 2023, and December 31, 2032.

In recent years, wood-burning appliance manufacturers have improved efficiency over their older models. Biomass fuel, which includes wood and wood-derived pellets, offers several advantages over traditional heating methods. One of the key benefits is its lower carbon footprint compared to fossil fuels. Biomass fuel is considered renewable as it is derived from organic materials, such as wood waste and agricultural crops. When burned in high-efficiency stoves, biomass fuel emits minimal greenhouse gases, contributing to reduced environmental impact. Additionally, biomass fuel is often sourced locally, supporting local economies and reducing dependence on foreign energy sources.

It is important to choose a stove that meets the thermal efficiency requirements to be eligible for the tax credit. Not all stoves meet these standards. There are stoves available at large box stores that do not meet the requirements, so choose a reputable hearth retailer or chimney service company to get a quality appliance. To identify qualifying products, individuals can refer to the Environmental Protection Agency's certified wood heater database, which lists stoves with efficiencies of at least 75%. Ask your hearth retailer or chimney sweep about the stoves they carry that qualify for the tax credit.

To claim the Biomass Tax Credit, homeowners must keep receipts for the purchase and installation, and the manufacturer's tax credit certificate. The manufacturer's certificate can typically be found on the manufacturer's website and should include information such as the manufacturer's name and address, the stove's make and model, proof of eligibility, and the manufacturer's signature. When filing taxes, individuals should complete Form 5695, available from the Internal Revenue Service (IRS), and include the necessary information, or give the information to your accountant. The credit offsets tax you owe, and it is not refunded to you.

Several manufacturers sell wood and pellet stoves that qualify for the Biomass Tax Credit. These include Regency, Quadra-Fire, Harman, Hearthstone, and Vermont Castings.

Like any heating system, biomass stoves require regular maintenance to ensure optimal performance and safety. Contact a professional chimney sweep for this service. Stoves should be swept annually, or bi-annually if used for continual heating purposes to remove flammable creosote. Only burn cordwood in the appliance and never burn treated wood, hedge, paper, or railroad ties. It is critical to follow the manufacturer's guidelines for cleaning, inspection, and maintenance.

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Marge Padgitt is the president of HearthMasters, Inc. in Independence, Missouri. She is the author of Wood-Fired Heating and Cooking and The Chimney and Hearth Pro's Resource Book. www.chimkc.com

Everyone Needs a Wood Stove for Emergency Heating!

Hearthstone wood-burning insert in a masonry fireplace

With the economy in shambles and the cost of everything going up, the one piece of advice I can give to people is this:

Everyone needs a wood-burning stove or fireplace insert in their home for emergency heating!

•  Wood-burning stoves work without the use of electricity or fans (unlike gas furnaces or pellet stoves).

•  Wood stoves and inserts produce TWICE the amount of heat (BTU's) than gas stoves or inserts!

•  Fuel is readily available either by using your own trees on site or purchasing through a firewood dealer. Tip: Buy NOW.

•  No electricity is needed for a wood stove or insert to work! In case of emergency when the power is out you'll be able to stay in your home instead of going to stay with friends or family or going to a hotel.

•  With a freestanding stove you can cook on the top if needed.

Freestanding wood-burning stove by Hearthstone

Use a wood-burning stove during fall and winter as a supplemental heating source to save money and provide a more comfortable, even heat. Radiant heat from a wood stove or masonry heater has more health benefits than a gas furnace or electric baseboard heaters.

Good quality wood stoves aren't inexpensive - but they are worth the investment. A good stove will last many years. Note: beware of box store wood stoves that have no or limited warranty and may burn out after a few seasons. 

New EPA approved wood-burning stoves and inserts are 75%+ efficient which means that most of the heat is staying in your house rather than going up the flue as with a standard open fireplace. 

 

Bonus: Get a TAX CREDIT for an efficient wood stove or insert up to 26% in 2022 and that includes labor and all materials!

Call us if you are in the greater Kansas City area or another professional chimney sweep our hearth dealer to discuss upgrading your inefficient open fireplace to a high-efficiency wood-burning insert, or if no fireplace is available you can have a freestanding wood stove along with a Class A chimney or stainless steel chimney liner installed. Note: These appliances can ONLY be installed in MASONRY chimneys or with a CLASS A chimney.

A word about GAS: If you have a gas-burning insert or stove, it will likely work with no power available. They just produce HALF the amount of heat as a wood-burning appliance.

Note: Blowers on gas or wood-burning appliances will NOT work unless you have a generator. But they will still provide heat. 

 

Find a professional installer at www.nficertified.org or www.csia.org. 

_____________________________

Marge Padgitt is a chimney industry veteran and author of Wood-Fired Heating and Cooking and the Chimney Pro's Resource Book. She is a speaker, talk show guest, and instructor. Visit www.chimkc.com or www.hearthmasters.net for more information.

HearthMasters Publishing announces the release of Wood-fired Heating and Cooking

HearthMasters Publishing announces the release of Wood-fired Heating and Cooking: How to choose, maintain, and operate a wood-fired appliance

Kansas City, Missouri, November 4, 2021

Wood-Fired Heating & Cooking is a guide for homeowners, preppers, and homesteaders who are planning to install a wood-fired heating appliance, improve their existing masonry fireplace, or install a wood-fired cooking appliance. Industry veterans Gene and Marge Padgitt explain how each type of appliance works and how to properly locate, operate, and maintain them.

Heating appliances covered in this book are masonry fireplaces, Rumford fireplaces, circulating fireplaces, furnaces, wood-burning fireplace inserts, freestanding stoves, masonry heaters, and rocket mass heaters. Wood selection and preparation is included. Cooking appliances discussed are wood-burning indoor cook stoves, indoor and outdoor brick ovens and oven kits, Tandoori ovens, grills, and campfires along with cooking tools and utensils.

The authors provide references and suggested reading, online groups, and educational resources. A bonus section contains delicious recipes for cooking with a wood-fired appliance by the authors.

The release of Wood-Fired Heating and Cooking comes at a time when people are thinking about being self-sufficient and prepared for any disaster or power outage. The book is an excellent resource for persons who need help trying to navigate through all of the choices available to heat their home or cook with a wood-fired appliance.

Marge and Gene are available for radio interviews. 

Contact:

Marge Padgitt
hearthmasters.office@gmail.com
816-461-3665

The Tax Credit for Wood-Burning Appliances is Impressive

Hearthstone fireplace insert

 
With the new Residential Energy Efficient Property Credit Consumers can take 26% of the cost for a new wood-burning stove or fireplace insert, including the appliance, venting, and installation in 2021-2022.  

That is a big deal. Anyone who has considered purchasing a high-efficiency wood stove but held off due to the cost, now is the time to take advantage of the government program. 

Wood-burning appliances can be used for supplemental or primary heating, and in power outages. Anyone who has gone through a power outage without heat will understand the importance of having a backup heating system.

Freestanding stoves can be placed in almost any room. They are vented with a Class A stainless steel chimney, or a masonry chimney with a stainless steel flue liner.  Fireplace inserts are installed in a masonry fireplace with a stainless steel flue liner.  Wood-burning fireplace inserts cannot be installed into a manufactured firebox. 

Hearthstone
freestanding stove


• Consumers buying highly efficient wood stoves will be able to claim a 26% tax credit that is uncapped and based on the full cost of the wood stove (including purchase AND installation)
  
  
• The 26% tax credit is valid from January 1, 2021 through December 31, 2022. In 2023, the tax credit will remain in effect for the entire year, but the percentage steps down to a 22% tax credit.
  
  
• Qualifying wood stoves must meet at least a 75% HHV efficiency value. Not all wood stoves qualify.
  
  
• 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. These are available on the manufacturer website. 

An inspection of the current chimney must be done prior to the installation of a wood-burning insert or stove using the chimney for venting purposes. It must also be cleaned to remove any creosote. The best time to have this done is in the spring or summer.

HearthMasters carries Regency, Hampton, and Hearthstone brands, which all have qualifying models. 

For more information visit www.chimkc.com. 

__________________________________________________________

Marge Padgitt is a chimney industry veteran. She is a CSIA Certified Chimney Sweep and NFI Woodburning Specialist. Marge is the President of HearthMasters, Inc. in Kansas City, Missouri. Reach her at hearthmastersboss@gmail.com.

Consumer Alert: Unlisted Wood Stoves

By Marge Padgitt

►CONSUMER ALERT:

There is a big difference in quality and longevity when it comes to wood-burning stoves. Some metal wood-burning stoves and all barrel stove kits being sold by home improvement stores are NOT U.L. Listed or EPA approved, and therefore, cannot be installed in most cities according to the International Residential Code and city codes. 

Wood Stove Kit from U.S. Stove - this is an unlisted product

Wood stove barrel kits allow the consumer to modify a 50-gallon barrel to be used as a wood-burning stove. The barrels were not designed for this purpose, nor have they been tested for this use. It is unknown how long the so called "stove" would hold up. It is definitely not a product with a secondary burn chamber, so would be very dirty burning, spewing black smoke during use. The EPA does not allow such wood stoves to be used. 

So why are these kits sold? Good question, and I don't have the answer to that other than apparently, anyone can sell anything in the U.S. 

When purchasing a wood stove look for a label on the product that says "U.L." or Underwriters Laboratories, which indicates that the appliance has been tested do U.L. standards. If no label exists, it is not legal to install in most cities. 

Check with your local building codes official before purchasing a wood-burning heating appliance to see what their jurisdiction requires. Most major cities require that a licensed contractor do the installation of the stove and chimney or flue liner. The license they are looking for is called an HVAC or Master Mechanical License. Some cities require that a Certified Chimney Sweep by the Chimney Safety Institute of America or an NFI Certified Woodburning Specialist by the National Fireplace Institute do the installation. 

However, it is good advice to not waste your money on these potentially dangerous products. Find a local professional chimney sweep or hearth retailer who carries good quality wood-burning stoves with a warranty. 

_______________________________

Marge Padgitt is the CEO of HearthMasters, Inc. in Independence, Missouri. 

Get a Wood Stove Now

Everyone needs a wood-burning stove in their home for emergency heating and here's why:

•  Wood-burning stoves work without the use of electricity or fans (unlike gas furnaces or pellet stoves).
•  Wood stoves and inserts produce TWICE the amount of heat (BTU's) than gas stoves or inserts!
•  Fuel is readily available either by using your own trees on site or purchasing through a firewood dealer.
•  No electricity is needed for a wood stove or insert to work! In case of emergency when the power is out you'll be able to stay in your home instead of going to stay with friends or family or going to a hotel.
•  With a freestanding stove you can cook on the top if needed.

Use a wood-burning stove during fall and winter as a supplemental heating source to save money and provide a more comfortable, even heat. Radiant heat from a wood stove or masonry heater has more health benefits than a gas furnace or electric baseboard heaters.

Good quality wood stoves aren't inexpensive - but they are worth the investment. A good stove will last many years. Note: beware of box store wood stoves that have no warranty and may burn out after a few seasons. 

New wood-burning stoves and inserts are 75%+ efficient which means that most of the heat is staying in your house rather than going up the flue as with a standard open fireplace. 

Call us to discuss upgrading your inefficient open fireplace to a high-efficiency wood-burning insert or if no fireplace is available we can install a freestanding wood stove for you along with a Class A chimney or chimney liner. 

Note: Regency is offering a great deal on their products with $100 - $600 off wood stoves until February 20, 2017. An on-site inspection is required first so call now for an appointment.