Federal Tax Incentives for Biomass Stoves

Homeowners can get tax credits for installing efficient biomass stoves. Check with your local dealer. Stoves need to be certified to be at least 75% efficient. Take 30% off the purchase/ installation price up to $1,500 max.

Heat stoves must have a thermal efficiency of 75%, as measured using a lower heating value, and be used to heat a dwelling unit or heat water for use in the same. The law defines biomass fuel as anything from agricultural crops, trees, wood wastes & residues to pellets, plants, grasses and fibers.

While the new tax credit is in effect for all of 2009 and 2010, the IRS has not issued the guidelines for determining which stoves meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products.

These guidelines are expected by the later part of 2009; however, the credit applies to all qualifying stoves sold in 2009. As the IRS firms up the guidelines, stove manufacturers and dealers will be better able to make recommendations on products that are certified to be 75% efficient.

For more information about this new credit, check out the Tax Incentives Assistance Project (TIAP). This organization has a lot of information on not only tax incentives for biomass heating equipment, but several other energy efficient heating components.