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).
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.
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.