|This map shows which states historically
have the highest percent of residents
claiming the energy tax credits, including
the credit for wood and pellet stoves.
Feb. 9, 2018 – Today President Trump signed into law a budget deal that included a one year, retroactive extension of the wood heater tax credit. Thus, consumers who bought stoves that are 75% efficient or higher may qualify for a $ 300 tax credit on their 2017 taxes.
However, stove manufacturers often mislead consumers into thinking they are buying a stove that is at least 75% efficient when in fact it may be in the low or mid 60s. Manufacturers are allowed to self-certify which stoves are eligible for the credit and some appear to ignore any common sense definition of the Congressional language which stipulated requiring a stove “which has a thermal efficiency rating of at least 75 percent.”
The Alliance for Green Heat is calling on HPBA and stove manufacturers to publicly support and abide by a policy of only recognizing the average, overall efficiency of stoves based on third party testing at an EPA approved lab. Currently, some manufacturers will self-certify a stove to be eligible for the tax credit if it reached 75% efficiency on only one of its 4 burn rates. Others self-certify that their stoves are eligible when the stove did not reach 75% efficiency on any burn rate.
The Alliance for Green Heat supports tax credits and other incentives that focus on the cleanest and most efficient stoves. However, he federal tax credit has no criteria for grams per hour and virtually all stoves have claimed to be at least 75% efficient, minimizing the underlying intent of a tax credit.
The definition of 75% efficient is still unresolved. The IRS recognized the use of the European lower heating value (LHV) efficiency measurement until 2010 when Congress removed the LHV language. The efficiency measurement should have reverted to the North American standard of using HHV, but industry has continued to use LHV. (A stove measuring 75% efficiency using LHV would be about 70% efficiency using HHV.)
We will update this blog as it becomes more clear which companies are self-certifying stoves at 75% efficient when they may only be in the low or mid 60s.
To be sure that you are buying a higher efficiency stove, check the EPA’s list of certified wood stoves, and choose one that with an actual, verified efficiency. There are many non-cat stoves over 70% efficiency and many catalytic and pellet stoves over 75% efficiency. Unfortunately, if you are buying a stove in 2018, there is no guarantee that you will be able to get a tax credit for it. Congress may make the credit retroactive again in 2019, but then again, they may not.
For more background on the wood heater tax credit, click here.
|Labs test wood and pellet heaters for
efficiency and ones that are 75%
efficiency or higher can qualify
for the $ 300 tax credit.
The United States Congress is on the verge on finalizing a massive omnibus spending bill that would fund the government and provide tax breaks to businesses and individuals. Among them is the $ 300 tax credit to purchase a wood heating appliance. The bill extends that credit through Dec. 31, 2016 and is retroactive to Jan. 1, 2015.
Stove manufacturers do not have to publicly disclose their efficiencies and very few of them doA few stove companies, such as Blaze King, Jotul, Kuma, Seraph, Travis, Woodstock Soapstone publicly disclose actual efficiencies of most of their models on the EPA website and almost all of those models appear to qualify for the tax credit. The EPA considers higher heating value as a more accurate measure of efficiency for devices in the U.S. and therefore uses only those number on its list of EPA certified wood and pellet stoves.
Stove manufacturers routinely claim75% efficiency to be eligible for thetax credit, even when stoves are farbelow 75%. The average wood andpellet 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 signed into a law a package of tax credits including the one for wood and pellet stoves. The stove credit is for $ 300 for stoves purchased between Jan. 1, 2014 and Dec. 31 2014, making it almost entirely a retroactive “incentive.” To take the credit, taxpayers need to use IRS Form 5695. […]
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.  Often, when a tax credit rating like this expires, it is extended the pursuing yr and made retroactive to the […]
In Could 2010 the Alliance for Eco-friendly Heat wrote to the IRS, urging them to appear into the subject of unqualified outdoor wooden boilers claiming to be 75% successful. The Alliance had discovered a single producer, Shaver Furnaces, who had accredited their unqualified boilers as seventy five% efficient decrease heating benefit (LHV) making it possible […]