First page of the Extended archive.

$300 wood heater tax credit extended retroactively for 2017

Posted by Earth Stove on February 10, 2018 with No Commentsas , , , , , ,

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.

Heated Up!

HPBA lawsuit extended again in hopes of renewed talks with EPA

Posted by Earth Stove on June 30, 2017 with No Commentsas , , , , , ,
The US Court of Appeals for the DC Circuit agreed to yet another extension to the lawsuit brought by the Hearth Patio & Barbecue Association (HPBA) and the Pellet Fuel Institute (PFI) against portions of the EPA’s 2015 residential wood heater regulations.
HPBA “hopes to be back in talks with the EPA” said Rachel Feinstein, Government Affairs Manager for HPBA. In the motion requesting the extension, HPBA explained that talks between them and HPBA had broken down under the Obama Administration, but after Trump’s election, HPBA is again “attempting to discuss with DOJ and EPA whether the agencies are willing to engage in further discussions concerning the Rule.”
The Trump Administration has been re-opening rule making on many regulations, but some observers say it will likely be an uphill battle for the hearth industry because the EPA is already contending with many higher profile rules. In addition, even if the EPA were to agree to review parts of the NSPS, the rule would have to go through the notice and comment process that can take 1 to 3 years, at which point there could be a new President and a new head of the EPA.
The EPA can revise regulations at any point, with or without a pending lawsuit. It can commit to a new rule making process on selected parts of the NSPS, but it cannot necessarily guarantee any particular outcome. In cases of voluntary remand, petitioners can also lose their right to appeal.
If the case goes to court in 2018, the outcome partially depends on which panel of judges get appointed to the case and the result could be more unpredictable and potentially more favorable to the groups that intervened in the suit – the American Lung Association, the Clean Air Council and Environment and Human Health. If the case goes to court, the best outcome for HPBA would likely be a settlement agreement that puts part of the NSPS on hold until another rule making is complete.
HPBA and PFI now have until August 25 to file their brief laying out their grievances with the new regulations. HPBA is not challenging the requirement that when tested with cribwood, wood stoves must emit no more than 2 grams an hour as of 2020. This means that all stove manufacturers remain under this deadline to retest their stoves to achieve 2 grams an hour or less under the revised test method. All stoves that tested at 2 or under prior to May 15, 2015 still have to retest to be compliant with the 2020 limits. 
HPBA is challenging the requirement that if a stove is voluntarily tested with cordwood, it must achieve 2.5 grams per hour or less. HPBA asserts that since there is not yet an approved test method, it was premature for the EPA to set an emission limit. HPBA is also challenging emission limits for wood and pellet boilers and furnaces.

Heated Up!

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

Posted by Earth Stove on July 16, 2015 with No Commentsas , , , , , , ,

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 […]

Wooden Stove Tax Credit history Unlikely to be Extended in 2014

Posted by Earth Stove on May 23, 2014 with No Commentsas , , , , , ,

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 […]