Stove Tax Credit

As part of the American Recovery and Reinvestment Act of 2009 (Stimulus Package) many wood stoves and pellet stoves are eligible for a 30% rebate on the purchase price on their tax bill, up to $1500.  The Obama administration has done this to get the old “clunker” stoves out and encourage people to buy new wood stoves that are more efficient.  This makes the purchase even more of a value for you!  This is even better than a deduction as it directly reduces your tax bill.

A qualifying stove must be purchased between January 1, 2009 and December 31, 2010.

 
The tax credit even applies to parts and installation, even if they are purchased from separate companies. You can even purchase more than one stove and receive the 30% credit, up to $1500 total.

The 30% tax credit also applies to other household improvements, such as insulated windows, insulation, exterior doors, and some furnaces and water heaters. Check with your accountant for details. Do all of your home upgrading at once to save the hassle and the money!

For wood stoves, just check to make sure the stove you are looking at has the 75% efficiency in IRS-approved Low Heat Value testing.  Most vendors will be happy to verify this with you.  Just make sure to get the certificate of qualification.  The IRS does not require any further verification. Your state tax authority may well have a wood stove state tax rebate or credit available.  Oregon and Idaho, for example, both offer tax incentives that can allow you to increase your savings.

Factor in the 30% savings and you can see that owning a great wood stove or wood pellet stove is a great move!