2012 - 2013 US Tax Credit Information

The previous efficient biomass heating appliances tax credit that expired on December 31, 2011 was reinstated by the American Taxpayer Relief Act of 2012 (H.R. 8). The bill includes a “tax extender” for Internal Revenue Service Section 25C which provides a tax credit for biomass burning stoves that meet specific requirements. This tax credit amounts to $300 on a qualifying unit purchased between January 1, 2012 and December 31, 2013. HPBA encourages all members to check with their tax advisors for further clarity.


Some important points of the tax credit are:

  • To be considered, a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75%;
  • Installation is no longer covered as of the 2011 amendment;
  • This consumer tax credit equals $300 for the purchase of a 75% efficient heating appliance in 2012-2013;
  • This consumer tax credit is for 2012-2013 only;
  • This credit applies only to existing principle residences;
  • Manufacturers must provide a certificate of qualification for each product as required in the guidance which can be obtained for the customer to use;
  • Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification is not required to be attached to the tax return;
  • If a manufacturer has documentation that a stove has already achieved the required efficiency rating, no further testing is required;
  • The IRS has not stated that inserts are covered, or are not covered, but based on EPA’s practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts.

 

Click to Download
Official Certificate
of Qualification

Qualifying Units
Pellet 
VF 100 FPI
VF 100 FS
VF170
VF55
 
Wood
   
 
VF 1200 FS
VF 1700 FS
VF 1700 FPI