26% Federal Tax Credit – Wood Stove | Pellet | Fireplace Inserts
26% Federal Tax Credit Wood Stove Changeout & Incentive Programs
A wood stove changeout program is a voluntary program initiated at the local, state or regional level that provides eligible communities incentives to positively impact air quality. Residents of participating communities can receive rebates, low/no interest loans and/or discounts to replace their old appliances, with newer, more efficient wood or pellet stoves and fireplaces.
What is this new tax credit 25(D)?
- Effective Dates: The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) will come into effect on January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2023.
- Credit Amount: Creates a new tax credit of 26 percent of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moves down to 22 percent of purchase and installation costs in 2023 (under Sec. 25(D) of the U.S. tax code).
- Qualifying Products: Requires qualifying products (any biomass-fueled heater) to be at least 75-percent efficient per the higher heating value (HHV) of the fuel. Further IRS guidance on qualifying products will likely come in 2021
Models That Qualify
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To view a list of ongoing woodstove changeout programs, call us today at 303-838-3612 or Click Here To Visit The HPBA website. We will be happy to guide you to the right product for your home that qualifies for local incentive programs.
Save Money On Home Heating With Tax Credits & Other Incentives
Older wood stoves and wood heaters can impact the quality of the air both outdoors and even inside your home. Updating your old stove with a more efficient option conserves energy, improves air quality and enhances the aesthetics of your home. It also saves you money, especially if there’s a wood stove changeout program or tax incentive available for you to leverage.
Residents of communities with changeout programs can qualify for rebates, low/no interest loans and/or discounts to replace old appliances with cleaner-burning options. There are also tax credits, deductions, exemptions and rebates provided by state, federal and local governments.
Any of these options can significantly lower the cost of replacing your old stove or heater, making the investment easier to manage financially and the long-term payoff even greater.