|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.
Legislation repealing EPA wood heater regulations passes House of Representatives; Obama promises veto
29 Republican House memberssponsored the bill to repeal the newEPA heater regulations An energy bill passed the House of Representatives with an amendment that repeals the EPA’s new residential wood heater regulations. The bill is not likely to pass the Senate and President Obama vowed to veto it, if it comes to his desk. The […]
In July, three gentlemen fulfilled in Canada for delicate, private meetings to see if they could achieve settlement on important sections of the proposed EPA wood heater rules.  Two represented regional air high quality agencies and a single represented the wood stove and boiler business.  They were ready to compromise on many troubles, but have […]
Alliance for Green Heat Comments on EPA’s Proposed Standards of Performance for New Residential Wood Heaters, New Residential Hydronic Heaters and Forced-Air Furnaces, and New Residential Masonry Heaters Docket ID No. EPA-HQ-OAR-2009-0734 Download a PDF copy of comments. May 5, 2014 SUMMARY OF COMMENTS The Alliance for Green Heat (Alliance), appreciates the opportunity to comment on […]
In accordance to a tale filed right now by E&E’s Greenwire, the U.S. EPA has settled a lawsuit filed by seven states and environmental teams on wood-heater emissions with an agreement that the agency will release overdue laws up coming 12 months. In a consent decree at the U.S. District Courtroom for the District of Columbia, […]
Well prepared for the Alliance for Green Warmth by the law organization Van Ness Feldman, LLP             On August 1st, a coalition of states and a team of a number of environmental companies despatched individual notices to EPA notifying of their intent to file a lawsuit in excess of the hold off in issuing revised […]