On February 17, 2009 President Obama signed into law H.R. 1, the American Recovery and Reinvestment Act (ARRA). Included in that economic stimulus legislation is a tax credit for the purchase of a biomass-burning stove to help consumers fight rising home heating costs. Consumers can claim the credit on their federal income tax form at the end of the year.
This new credit reduces the amount of tax you owe by up to $1500. Specifically, the legislation provides for a 30% tax credit of up to $1500 total over a two year period (2009-2010) for the purchase of a 75% efficient biomass-burning appliance.
These tax credit provisions are extended improvements on legislation that passed in October 2008. The major changes are: 1) an extension of the credit to include 2010; 2) the increase on the credit from $300 to 30% of the total cost; and 3) the lower heating value (LHV) will be used for the efficiency rating rather than the higher heating value (HHV).
The tax credit went into effect on January 1, 2009 and is valid only for the purchase of a qualifying biomass stove (such as the Napoleon NPS40 pellet stove pictured above) during 2009 and 2010 (prior purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers a certification statement for the product). The maximum tax credit for the two-year period is $1500. Installation costs are also covered as long as they are required for proper and safe operation of the stove.
For more information on the tax credit and how to claim it, see the Hearth, Patio, and Barbecue Association website at http://www.hpba.org/government-affairs/issues-legislation/.
