Biomass Tax Credit

2009/2010 Biomass Tax Credit

Included in the 2009 Economic Stimulus legislation signed into law by President Obama on February 17, 2009, is a 30% (up to $1,500) consumer tax credit in 2009 and 2010 for the purchase of a 75% efficient biomass-burning stove as measured using a lower heating value.

The tax credit provisions in this new legislation contain improvement amendments to the legislation passed in October 2008. The major changes made were an extension of the credit to 2010 and an increase of the credit from $300 to 30% of the total cost up to a maximum of $1500.

Guidelines for determining what stoves meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products are determined by the U.S. Department of the Treasury and the Internal Revenue Service (IRS).  The tax credit took effect January 1, 2009.

In short all wood and pellet stoves that are EPA approved (75% or more efficient) qualify for the tax credit, a tax credit unlike a tax rebate is dollar for dollar meaning money back in your pocket.