Wood and Pellet Heater Investment Tax Credit (ITC)
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. Beginning in 2023, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems may be eligible to claim a 30% tax credit – capped at $2,000 annually – based on the full cost (purchase and installation) of the unit. For any questions, please call our team at (845) 471-1071.
What is this new tax credit?
Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is effect on January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
Credit Amount: Creates a new tax credit of 30 percent of the purchase and installation costs (with a $2,000 annual cap with no lifetime limit) for taxyears 2023 through 2032.
Qualifying Products: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel
- The EPA certified wood heater database may be referenced (not all products on the EPA list qualify. Look for products with efficiencies of at least 75 percent)
- A manufacturer certification statement attesting that product qualifies can also be relied upon