Wood and Pellet Stove Tax Credit Extended through Dec. 31, 2014

Stove manufacturers routinely claim
75% efficiency to be eligible for the
tax credit, even when stoves are far
below 75%.  The average wood and
pellet stove may be around 70%.

Updated on December 16, 2014 – A short term extension of the $ 300 federal tax credit to purchase a new wood or pellet stove was signed into law by President Obama on Dec. 19, after having passed the House and the Senate.

The law extends a host of tax provision through Dec. 31 2014, making it almost entirely a retroactive tax credit.   A two-year deal that would have extended selected tax credits through Dec. 21, 2015 fell through.





The tax credit, which started out at $ 1,500 applied to all stoves that were at least 75% efficient.  The stove industry used a loophole to help ensure that all EPA certified wood stoves and all pellet stoves could claim to be 75% efficient.  As a result, many consumers are unwittingly buying stoves that may be less than 60% efficient, or even less than 50% efficient.  Pellet stoves in particular can be very low efficiency, saddling consumers with unnecessarily high pellet fuel bills.

Because of this loophole, the stove tax credit has long been criticized in the energy efficiency community as being dominated by “free riders” because the credit applies to virtually every stove and does not push consumers toward the most efficient ones. Instead of giving consumers an incentive to buy higher efficiency or “greener” appliances, like Energy Star appliances that help people save money, the government has been giving a discount to all wood and pellet stoves (other than uncertified, exempt wood stoves.) 

Of the hundreds of stove models on the market, manufacturers have only disclosed actual, third party verified efficiencies for about 20 models and they are listed here. Blaze King is the only stove manufacturer who discloses actual efficiencies for all their models.  To date, all the major pellet stove manufacturers have refused to disclose any actual efficiencies.  Seraph Industries, a very small pellet stove maker, has disclosed their efficiencies and they are quite high.
The EPA, nor any other federal or state agency involved in wood and pellet stove education, warns consumers that they are not necessarily buying a 75% efficient stove, as promised by manufacturers who issue certificates assuring consumers that their stoves are eligible for the tax credit.
The Alliance for Green Heat has been a long-time advocate of a robust tax credit, but only for stoves that are genuinely cleaner and more efficient.  The federal tax credit has never incorporated particulate emissions into its eligibility requirements.
Consumers who bought a stove in 2014 can claim the credit on their 2014 taxes, assuming they have not exceeded the $ 500 limit for residential energy improvements.  

In addition to the federal tax credit, more states are beginning to offer incentives, including Idaho, Oregon, Maryland, Montana and New York.  

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Photograph Album of the 2014 Collaborative Stove Design and style Workshop

Ivana Sirovica, Jessica Peterson and Jeff Hallowell, from ClearStak&nbspBrookhaven Countrywide Laboratory.

Rebecca raking coal mattress to put together for the next load of gas.&nbsp
Thanks to John Pilger and Chimney Safety Institute of America and Olympia Chimney for donating pipe and installation!

Taylor Myers showing a actual time electronic show, using bluetooth, of temperatures in his stove.

Indigo Resort in Riverhead NY – our foundation for the 7 days

The Testo exhibits real time emissions, with prime line showing particulate issue (PM)

Rebecca Trojanowski removes filters. The dark circle in foreground are the particulates from the check burn that will be weighed to establish grams for each hour.

Even the kindling is very carefully weighed so that every stove gets the very same warm up rick.
Glenn Miller from the Fairbanks Air District on the remaining, Rob Rizzo from Mass. Dept. of Power, and Gaetan Piedalue and Marc Suave from Polytest Labs, a EPA accredited test lab. Ellen Burkhard from NYSERDA is peering into the stove.
Jessica Peterson from ClearStak functioning late into the evening to prepare for tests tomorrow.

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Wooden Stove Tax Credit history Unlikely to be Extended in 2014

AGH, May 22, 2014 – The $ three hundred federal tax credit score to obtain a new wooden or pellet stove expired on December 31, 2013 and it is unlikely to be prolonged in 2014.&nbsp Often, when a tax credit rating like this expires, it is extended the pursuing yr and made retroactive to the date that it experienced expired.&nbsp This is what a Senate monthly bill would have accomplished for several tax credits that was unanimously accredited by a Senate committee this spring.&nbsp But on Could 15, Senate Republicans voted from passing the invoice even although extending most of the expiring tax credits had wide bi-partisan assistance. &nbspThe monthly bill failed due to the fact Democratic management would not permit unrelated amendments to be included on the Senate flooring following the invoice had been negotiated in committee.&nbsp

This displays the percent of taxpayers that took a tax credit score
for possibly strength performance or renewable vitality
advancements, which includes the stove credit score.

It is not unattainable that this bill could be brought to the Senate flooring for one more vote before or soon after the November elections. But it is not likely at this point, which implies that the $ three hundred stove tax credit score is unlikely to be prolonged this 12 months.&nbsp There is also a slight chance that a bill in 2015 could make the tax credit history retroactive to Jan one, 2014, giving tens of thousands of stove purchasers an sudden bonus. That will not aid push far more product sales in 2014 and would be considered by a lot of as a waste of taxpayer dollars.&nbsp Individuals receiving such tax credits are named “free riders” due to the fact they would have produced the purchase anyway and ended up not determined by the discount offered by the tax credit score.
The stove tax credit rating has extended been criticized by a lot of in the power efficiency neighborhood as being dominated by “free riders” simply because the credit history applies to nearly every single single EPA licensed wooden stove and uncertified pellet stove on the market place.&nbsp As an alternative of an incentive to get consumers to buy a larger efficiency or far more “green” appliance, like Vitality Star appliances, the federal government has been supplying a discount to all wood and pellet stoves (other than uncertified, exempt wooden stoves.)&nbsp This is because stove producers are permitted to self-certify their eligibility for the tax credit history, leading each and every producer to claim they are making only substantial efficiency stoves.&nbsp The number of stoves that have third party verified efficiencies are listed listed here.
Stove producers and other folks protect generating every stove qualified for the tax credit rating since no matter of effectiveness or emission levels, stoves are an crucial way for ordinary people to affordably warmth their houses and decrease reliance on fossil fuels.&nbsp The tax credit score allows some share of customers to pay for the acquire, fairly than purchasing older, uncertified stoves on the second hand market, or just relying on fossil fuels.&nbspThe Alliance for Green Heat has been a extended-time advocate of a robust tax credit history, but only for stoves that are genuinely cleaner and more effective.
Customers who acquired a stove in 2013 could claim the credit history on their 2013 taxes, assuming they have not exceeded the $ 500 restrict for residential vitality advancements. &nbspThe over map shows that people of the higher midwest and northeast most typically claimed renewable power and power efficiency tax credits. &nbspThis is likely owing to the perception that weatherization is far more crucial in colder climates and simply because the housing inventory in these areas is older and wants far more weatherization. &nbspData about for every capita use of the stove tax credit is not accessible, as far as we know. &nbspData displaying the average house revenue of households employing the stove tax credit score in contrast to solar, geothermal or other tax credits would be extremely useful.
With the federal tax credit absent, there could be far more pressure for states to offer rebates or tax credits for the cleanest stoves.&nbsp More states are beginning to supply incentives, often simply because longtime photo voltaic incentives are noticed as unfairly benefitting one particular technologies and one particular demographic to the exclusion of another technology and demographic.

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