Starting January 1, 2023, high-efficiency biomass boilers qualify for the 30% US tax credit, or up to $2,000. Read below to learn which products qualify and how to claim the new 2023-2032 Wood and Pellet Heater Tax Credit.
Which Stoves Qualify?
Only outdoor furnaces with at least a 75 percent efficiency rating per the Higher Heating Value (HHV) will be eligible for the credit. The credit can be applied to both purchase and installation costs but does not apply to used products.
The following HeatMasterss furnaces qualify:
When does the tax credit come into effect?
The tax credit under Section 25(C) of the Internal Revenue Code is available for furnaces installed between January 1, 2023, and December 31, 2032.
What will happen to the former tax credit?
On December 31, 2022, the IRA will remove biomass products from Section 25(D) of the tax code that offered the uncapped 26 percent credit in 2021 and 2022.
What if I purchase a furnace this year and install it next year?
Products must be claimed on the same tax year installation was completed. For example, a furnace purchased in 2022 but isn’t installed until 2023 can be claimed under the Section 25(C) tax credit (30% with a $2,000 cap) on a 2023 tax return.
What kind of paperwork do I need to claim the credit?
Make sure to keep all sales and installation receipts, as well as a manufacturer’s certification statement. Download the HeatMasterss Manufacturer’s Certification. Always speak with a tax professional as individual situations can vary.
How does the credit work?
The credit is a reduction of the total federal income tax owed in the year the furnace was installed. If your tax owed is reduced to zero, any unused credit cannot be forwarded to the following tax year.
Choosing the high efficiency of the HeatMasterss G Series means thousands of dollars in tax credits. Request a free quote today and see how much you’ll save!
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