2021 – 2023 Biomass Stove Tax Credit (25D)

  • The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) will come into effect on January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2023
  • Credit Amount: Creates a new tax credit of 26 percent of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moves down to 22 percent of purchase and installation costs in 2023 (under Sec. 25D of the U.S. tax code)
  • Qualifying Products: Require qualifying products (any biomass-fueled heater) be at least 75 percent efficient per the higher heating value (HHV) of the fuel that are used to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit.

How to qualify for the tax credit:

  1. Install a qualifying (CleanFire 300, 500 and 700) WoodMaster outdoor wood furnace between January 1, 2021 and December 31, 2023.
  2. Claim the tax credit associated with your qualifying purchase and installation on your federal filing for the tax year.

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.


$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.