26% Tax Credit

2021 – 2023 Biomass Stove Tax Credit (25D)

What is the Biomass Stove Tax Credit?
The new Sec. 25(D) tax credit is for qualified models and installation and is at 26% throughout 2021 and 2022 before decreasing to 22% in 2023. Currently, the CleanFire 300, 500 and 700 models qualify for the credit.

What qualifies for the Biomass Stove Tax Credit?
> Qualified furnaces must burn biomass as a fuel, heat air or water, and be at least 75 percent efficient per the higher heating value (HHV) of the fuel. The CleanFire 300, 500 and 700 meet this requirement.
> Must be installed between January 1, 2021 and December 31, 2023 to heat the taxpayers primary new or existing home.
> Both purchase and installation costs (e.g. ThermoPEX, parts and accessories, onsite labor) can be included in your total cost.

Does it matter how I pay for my furnace?
It doesn’t matter if you pay for the furnace and installation up front or finance your purchase. Master Financing is available at participating dealers with multiple financing options available to fit your financial needs. Either way, you are eligible for the tax credit.

What paperwork should I keep for tax records?
> Keep your purchase receipt, including cost of products and installation.
> Keep a copy of the 2021-2023 Manufacturer Certificate stating that the stove qualifies for the credit and is at least 75 percent efficient (HHV).

You can download the 2021-2023 Manufacturer Certificate here.

How do I claim the Sec. 25(D) credit?
> After you install your qualified WoodMaster outdoor furnace, claim the credit on your federal income tax form.
> The form you will need to fill out for the IRS is 5695.

Disclaimer
This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. WoodMaster, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. WoodMaster is not responsible or liable for the taxpayer’s ability to receive tax credits.


$300 Biomass Stove Tax Credit (25C) – Expired 12/31/2020

  • Biomass heating appliances must be at least 75% efficient. –
  • Covers qualifying WoodMaster products listed on the Manufacturer’s Certification Statement.

How to qualify for the tax credit:

  1. Purchase and place in service a qualifying WoodMaster outdoor wood furnace now until December 31, 2020.
  2. Save the purchase receipt and the manufacturer’s certification statement for the furnace purchased.
  3. Claim the tax credit associated with your qualifying purchase on your federal filing for the tax year.

Details of the tax credit:

  1. Tax credit is 10% of the amount paid for the qualifying product (installation costs cannot be included) up to a maximum of $300.
  2. The credit applies to the homeowner’s primary residence only.
  3. A tax credit is a dollar-for-dollar reduction subtracted from your tax liability. Therefore, $300 can be subtracted directly from the amount of tax that is owed, or added to a tax refund.

Summary:
This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. WoodMaster, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. WoodMaster is not responsible or liable for the taxpayer’s ability to receive tax credits.