What is the biomass tax credit?
The biomass tax credit is a $300 tax credit available to homeowners who purchased a new biomass stove during 2015 and 2016. If you purchased a stove during 2015, you can still include it on this year’s taxes; if you have purchased or plan to purchase a stove before December 31st, 2016, you will be able to still qualify for the credit next year.
The biomass tax credit has been used for several years to encourage homeowners to replace their existing wood or pellet stoves. Because many older biomass stoves are not efficient or release large amounts or smoke or particulate emissions, the biomass tax credit is a way to encourage consumers to choose more energy efficient wood and pellet stoves.
Does my stove qualify?
In order to qualify for the $300 tax credit on their federal income tax return, new stove purchases must meet the following criteria:
– A new wood or pellet stove purchased during 2015 or 2016. If your stove was purchased during 2014 but not installed until 2015, it can still quality to be included in the tax credit.
– The stove has not already been used for a biomass fuel tax exemption.
– The stove has an EPA certification of at least 75% efficiency.
How to I claim the tax credit?
When filing by paper: The biomass tax credit is included in your federal income taxes and can be claimed by filling out the IRS form 5695. The residential energy credits for which new biomass stoves qualify is typically found on line 22A.
When filing online: For those who complete their tax returns online or with tax software, the biomass tax credit can be claimed in the “Credits” section of the federal form. The biomass stove tax credit is sometimes listed under the subcategory “Homeownership”.
Benefits of biomass stoves
There are a number of reasons above and beyond a tax credit to consider purchasing a new wood or pellet stove!
– Energy efficient: Most modern stoves are certified by the EPA as well as Energy Star. To earn these ratings, stoves must burn with at least 75% efficiency, making them much more efficient than traditional open hearth wood fireplaces.
– Green fuel sources: Biomass stoves use renewable resources as their fuel source, making them a green heating option. Likewise, pellet for pellet stoves are made using compressed sawdust, wood scraps, and other remnants, helping you recycle while keeping your home warm.
– Low operating cost: Both pellet and wood stoves have very low operating and maintenance costs. Pellet stoves can be ran for less than the cost of oil, electricity, kerosene, and propane. Likewise, firewood can often be purchased as low to no cost – depending on how much wood chopping you are willing to do.
This year, let your new wood or pellet stove save you money on your tax return. Contact Magic Broom today to learn more about our wood and pellet stoves that qualify for the biomass tax credit!