If you have been thinking about adding a new wood stove to your home but need another reason to go ahead and purchase one, Winston’s Chimney Service has just the inspiration you need. The Internal Revenue Service (IRS) has extended its tax credit to December 31, 2016 as the deadline to purchase a qualifying biomass (wood and pellet) stove as a way to encourage Americans to buy environmentally friendly products that can improve your home’s energy efficiency. Our staff knows exactly which models of wood and pellet stoves we sell qualify for this incentive, and we are happy to help you pick out the best stove for your home. We would like to share with you more information with you about this biomass tax credit and how you can use it to help you with your federal income tax bill.
How much is this tax credit for?
If you have purchased a qualifying wood or pellet stove between January 1, 2015 and December 31, 2016, you will be eligible to receive a $300 tax credit to use to reduce your federal income tax amount when you file your annual return.
How do I file this credit on my tax return?
If you file a paper return, you will need IRS Form 5695 and will claim the credit on line 22a for residential energy property costs — energy-efficient building property. If you file electronically with software like H&R Block or TurboTax, you can find the credit under the “Credits” section of the Federal part, according to the Hearth, Patio & Barbecue Association (HPBA).
What qualifies specific models and brands of biomass stoves?
In order to qualify for this $300 tax credit, the wood or pellet stove must either meet or exceed a 75 percent efficiency rating. This percentage was designated in 2008 by the US Congress in the Emergency Economic Stabilization Act.
What documents do I need to apply for this credit on my tax return?
Although you do not need to send these in with your return, one of the two documents you do need to keep for your records include the original receipt to prove you purchased the qualifying stove during the effective time period. The other document, the manufacturer’s certificate, will be given to you by the retailer where you bought the stove. In order to indicate the stove is qualified for the credit, this certificate should include the following: the name and address of the manufacturer, the identification of the class of the stove, the make and model number of the stove, a statement that the stove is qualified for the credit, and a declaration that is signed by someone who is authorized to bind the manufacturer to this “Under penalties of perjury, I declare that I have examined this certification statement, and to the best of my knowledge and belief, the facts are true, correct, and complete.”
Have we convinced you that it is the best time to buy a new wood or pellet stove? Contact us at Winston’s Chimney Service to find out more information about the options of qualified stoves available to you for this $300 tax credit.
