US Tax Credit Makes Wood Stoves and Fireplaces More Affordable

February 10, 2010

Homeowners can save significantly on the cost of a new wood or pellet-burning stove thanks to a federal consumer tax credit designed to encourage energy-conscious purchases. It can cover 30 percent of the cost of clean, fuel-efficient stoves and fireplace inserts, up to a maximum credit of $1,500.

The tax credit applies to qualified stoves, fireplaces or fireplace inserts purchased between January 1, 2009 and December 31, 2010.

Qualifications include heating appliances that:
- Burn a biomass fuel source like wood or renewable pellets
- Will be installed during the eligibility period in an existing principal residence, not a newly constructed house or vacation home
- Meet a minimum 75% efficiency rating as certified by the manufacturer

Purchasers of qualifying appliances can claim the credit on their federal tax return. These consumers should save their receipt and the manufacturer's certification that states the appliance they purchased is eligible. Installation and venting costs are included in calculating the credit's total value.

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