Wood and Pellet Heater Tax Credit Extension Passes the U.S. House of Representatives

The U.S. House of Representatives passed the Build Back Better Bill on Friday, November 19th, by a vote of 220-213. The $1.75 trillion social policy and climate change bill includes language that would extend the tax credit for wood and pellet heaters with a thermal efficiency of at least 75% per the higher heating value … Continue reading Wood and Pellet Heater Tax Credit Extension Passes the U.S. House of Representatives

Wood and Pellet Heater Tax Credit Update and What’s Next

As previously reported, the U.S. House of Representatives was unable to hold a vote on a large reconciliation bill on Friday, November 5. They did vote on an infrastructure bill, but they did not vote on the legislative language affecting energy efficiency tax credits. The House hopes to hold a vote before Thanksgiving, which means … Continue reading Wood and Pellet Heater Tax Credit Update and What’s Next

IRS Updates 2021 Tax Form for Wood and Pellet Heater Tax Credit

The IRS has updated its draft forms (but not instructions) for 2021 taxes, including the Residential Energy Credits tax form (Form 5695). Eligible taxpayers will be able to claim the new Section 25(D) tax credit for qualifying biomass stoves on line 5 of tax form 5695. Unlike in previous iterations of this tax form, biomass … Continue reading IRS Updates 2021 Tax Form for Wood and Pellet Heater Tax Credit

Be Ready for the Season: Study Up on the Tax Credit Details

As the selling season draws nearer, HPBA has been receiving an increasing number of inquiries about the tax credit from consumers – a sure sign that customers are out shopping, but sometimes receiving incorrect or outdated advice. Make sure you are up to date on the tax credit and what it means. Be a resource … Continue reading Be Ready for the Season: Study Up on the Tax Credit Details

Major Biomass Stove Tax Credit Changes in 2021

JANUARY 11, 2021 UPDATE: A spending legislation and pandemic relief package was signed into law at the very end of December and included a long sought-after tax credit for wood and pellet heaters. These systems, whether they are stoves purchased to heat space or larger, whole home heating systems, will now qualify for a renewable energy … Continue reading Major Biomass Stove Tax Credit Changes in 2021

Biomass Stove Tax Credit Expires December 31, 2020

The $300 tax credit for purchasing a qualifying biomass stove is set to expire on December 31, 2020. In order to claim the credit on a 2020 tax return, both the purchase AND complete installation must happen on or before December 31, 2020. See our tax credit website page for more information, including FAQs, consumer … Continue reading Biomass Stove Tax Credit Expires December 31, 2020

Save the Biomass Stove Tax Credit – Send Congress an Email

The 25C tax credit for biomass stoves is a $300 dollar-for-dollar credit which has traditionally been retroactively extended each year for the last few years. The credit will expire after December 31, 2020 if it isn't extended by Congress. Legislation is being discussed in Congress that would extend the credit past December 31, 2020 if … Continue reading Save the Biomass Stove Tax Credit – Send Congress an Email

Biomass Stove Tax Credit Included in House Infrastructure Bill

The “INVEST in America Act” (H.R. 2), infrastructure legislation that passed the U.S. House of Representatives on July 1, contained updates to energy efficiency tax credits, including the biomass stove tax credit. This legislation, however, is not expected to pass the Senate, as there is disagreement between parties on details of the bill. The legislation would extend the … Continue reading Biomass Stove Tax Credit Included in House Infrastructure Bill

Biomass Stove Tax Credit Proposed Increase

HPBA sent a letter to Congressional leadership that calls for some changes in the Section 25C tax credit for homeowner energy efficiency improvement in the bipartisan Home Energy Savings Act of 2019. Those changes include: the lifetime limit being cleared and setting a new lifetime limit of $2,400, increase the credit for biomass stoves from … Continue reading Biomass Stove Tax Credit Proposed Increase

Promoting the Biomass Stove Tax Credit

As you know, the biomass stove tax credit of $300 was extended for purchases made since January 1, 2018 until December 31, 2020. Tax forms are now updated, and tax preparation software should also reflect the extension of this credit. Download our quick reference one-pager on what consumers need to know. Visit HPBA's website for … Continue reading Promoting the Biomass Stove Tax Credit