Tax Credit for Biomass Stoves

What it is:

The Biomass Stove Tax credit is a 10% tax credit (up to $300) on the cost of a wood or pellet stove, with installation, purchased between January 1, 2015 and December 31, 2016. The credit’s goal is to encourage homeowners to make purchases that increase the energy efficiency of their home.

How to Qualify:

To receive this tax credit you must:

  • Purchase a biomass stove between January 1, 2015 and December 31, 2016.
  • Your new pellet/wood-burning appliance must meet 75% efficiency rating.
  • Must be purchased for you primary residence.
  • Keep records of purchase and the manufacturer’s certification statement for your personal tax records.

*This credit is only applicable if you have not filed for it in previous years*

How to file:

The credit can be claimed on IRS form 5695, with detailed instructions on the last page at the bottom of the first column. For tax filing software, it can most likely be found under a “Credits” section, possibly under a “Home Ownership” tab. For more information, we recommend speaking with your tax advisor.