If you’ve been waiting for the “right” time to buy a new stove to heat your home, here’s your sign: you can receive over $1000 in savings with the Pellet and Wood Stove Tax Credit. You read that right! For a limited time, you can get significant savings with the purchase of a new, highly efficient stove. Want to learn more? Here are all the details on the Pellet and Wood Stove Tax Credit.
What is the Pellet and Wood Stove Tax Credit?
This legislation provides a significant tax credit for the purchase of qualifying wood and pellet stoves that are highly energy efficient. For the remainder of 2022, get a 26% credit of the full purchase and installation amount. Starting in 2023, the tax credit percentage will decrease to 22%. Costs for labor, piping, wiring, chimney system, floor protection, and (of course) the appliance itself can all be counted towards the tax credit.
How Much Can I Save?
With the Pellet and Wood Stove Tax Credit, you can easily save over $1000 or more. While the exact amount of savings depends on the cost of your stove and the installation, you can easily estimate the 26% savings (22% starting in 2023).
There is also no cap on savings; consider a highly efficient stove for your second home, vacation home, rental property, etc. for even more savings.
In addition to the tax credit, keep in mind that the qualifying stoves are highly efficient. This means that you will also experience significant energy savings year after year.
Which Wood and Pellet Stoves Qualify?
To qualify for the tax credit, a stove must have a High Heat Value (HHV) of 75% efficiency or greater. The Environmental Protection Agency has a database of wood stoves that you can use to verify which stoves meet this standard.
When on the database, click “Change to Advanced Search”, slide the Efficiency percent to 75%, and click search to see a list of qualifying stoves. Additionally, at Energy Center-Manhattan Pool, we can help you with which stoves qualify. Just stop by our store and our team would be happy to show you which models you can choose from.
How Do I Claim the Tax Credit?
To claim the Pellet and Wood Stove Tax Credit, you simply include it in your tax return forms, specifically IRS Form 5695. If you feel you might qualify for a previous year’s purchase, you can submit an amended 1040-X Form and have the credit applied this year.
We highly recommend you consult with a tax professional when filing. This is essential to make sure everything you do is in full compliance and to ensure that you are getting the most credit you qualify for.
Through the end of this year, you can receive the maximum 26% tax credit on a new fireplace for your home! Act now to take advantage of this savings and enjoy a new, highly efficient stove this winter. Contact Energy Center-Manhattan Pool to check out our full line of wood and pellet stoves and learn more about the Pellet and Wood Stove Tax Credit.