Federal Biomass Tax Credits
2011: Get a $300 Tax Credit for Choosing Energy Independence
On December 17, 2010, President Obama signed into law a tax package that extends a series of tax credits geared toward boosting the economy. Included in this package was the extension of a tax credit for biomass heating appliances that was set to expire on December 31st. However, Congress did decrease the benefit to consumers that was in place from 2009-2010 and added further restrictions. The new tax credit provides a 10% credit for the purchase of a qualifying biomass heating appliance in 2011, capped at $300, and applies to purchase price only - it is not extended to installation.
By extending this tax credit, Congress signals its support of the renewable fuel industry and for Americans who seek to heat with biomass fuel.
Qualifying ENERGY KING solid-fuel heating appliances are:
- ENERGY KING 385EK Wood Furnace with Automatic Draft
- ENERGY KING Bay 2000C Freestanding Woodstoves
- ENERGY KING Bay 2000C Fireplace Inserts
- ENERGY KING Silhouette 2850C Zero-Clearance Wood Fireplace
To claim your tax credit:
After purchasing a qualifying ENERGY KING solid-fuel heating appliance, simply download and print the
2011 Official Manufacturer’s Certificate, which indicates that your new ENERGY KING heating appliance qualifies for the tax credit. Consult your tax advisor to determine whether you qualify for any potential tax credits, and for proper filing of any credits for which you qualify. You need not submit your certificate when you file your income tax return, however the IRS requires you to keep the certificate with your personal tax records.
Download the 2011 Official Manufacturer’s Certificate.
2009-2010: Get a 30% Tax Credit (up to $1,500) for Choosing Energy Independence
The 2009-2010 ARRTA Tax Credit has expired. If you purchased a qualifying product in 2010, please see below for information on how to claim your credit when filing your 2010 income tax return.
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009 (ARRTA). This economic stimulus package provides for a 30% tax credit (up to $1,500.00) for the purchase in 2009 and 2010 of a biomass-burning heating appliance with a thermal efficiency rating of at least 75% as measured using a lower heating value. “This stimulus legislation supports renewable energy and will help consumers control their winter heating costs,” said Jack Goldman, president of the Hearth, Patio & Barbecue Association (HPBA). “With the long-term rise in home heating prices, this tax credit will help alleviate some of the initial cost for those consumers wanting to purchase a 75%-efficient wood or pellet stove.”
Qualifying ENERGY KING solid-fuel heating appliances are:
- ENERGY KING 385EK Wood Furnace with Automatic Draft
- ENERGY KING Bay 2000C Freestanding Woodstoves
- ENERGY KING Bay 2000C Fireplace Inserts
- ENERGY KING Silhouette 2850C Zero-Clearance Wood Fireplace
To claim your tax credit:
After purchasing a qualifying ENERGY KING solid-fuel heating appliance, simply download and print the Official Manufacturer’s Certificate, which indicates that your new ENERGY KING heating appliance qualifies for the tax credit. Consult your tax advisor to determine whether you qualify for any potential tax credits, and for proper filing of any credits for which you qualify. You need not submit your certificate when you file your income tax return, however the IRS requires you to keep the certificate with your personal tax records.
Download the 2009 - 2010 Official Manufacturer’s Certificate.
If you purchased an ARRTA-qualifying bio-mass appliance in 2009 or 2010, you can use this link to download the IRS form to claim your credits:IRS Form 5695 - Residential Energy Credits.
Some important points of the tax credit, as summarized by HPBA:
• This consumer tax credit is available for all qualifying products purchased on or after January 1, 2009,
as long as the manufacturer offers a certificate of qualification for the product you purchased.
• Installation is covered, as long as it is a requirement for the stove’s proper and safe functioning.
• This consumer tax credit only applies to existing principle residences.
• This consumer tax credit is available in both 2009 and 2010; however the total credit that you can claim
is $1,500. You can’t claim $1,500 in 2009, and then another $1,500 in 2010.
• This consumer tax credit is aggregate; in other words, the total $1,500 can include other energy-saving
products that are covered by ARRTA. For example, if you were to claim $900 on a new stove, then you
would have $600 to claim on the purchase of additional energy-saving products.
The IRS has provided guidance for the tax credit. Be sure to read the entire guidance, IRS Notice 2009-53, Non-business Energy Property, which can be found at www.irs.gov/pub/irs-drop/n-09-53.pdf. Consult your tax advisor to determine whether you qualify for any potential tax credits, and for proper filing of any credits for which you qualify.
If you purchased an ARRTA-qualifying bio-mass appliance in 2009 or 2010, you can use this link to download the IRS form to claim your credits:IRS Form 5695 - Residential Energy Credits.