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Homeowners warm up to tax credit for wood-and pellet-fueled heat

(ARA) - For warmth and beauty in the home, it's hard to beat the ambience of a real wood-burning stove or fireplace. Homeowners now have another reason to warm up to one - they may qualify for a federal tax credit of up to $1,500 if they purchase and install a 75-percent efficient wood- or pellet-burning (biomass) stove in 2009 or 2010. Thirty-percent of the total cost, including the appliance, installation and piping, can be claimed.

The tax credit is part of the federal government's efforts to encourage homeowners to choose green, energy-efficient products for their homes. Advantages to heating your home with wood or pellets are controlled heating costs, the satisfaction of utilizing renewable fuels in a clean-burning appliance, and now, a tax credit.

"Today's wood- and pellet-burning stoves are considerably more efficient than dated models, producing more heat with less fuel to provide warmth and comfort for many hours," says Dan Henry, chief technical officer for Quadra-Fire and Harman Home Heating. "They are thermostatically controlled, easy to maintain and have advanced burn technology that produces less ash and low outside air particulate emissions. Now it's more convenient than ever to heat your home with renewable fuels, save money on utility bills and contribute to a greener Earth."

Tax Credit Makes Wood Stoves and Fireplace Inserts More Affordable

Earn up to a $1,500 Tax Credit When Purchasing a Clean, Green Heating Appliance

Arlington, VA., September 21/PRNewswire-USNewswire/ - As temperatures fall and thoughts turn to warding off the approaching cold weather, Americans have more incentive than ever to install a new wood or pellet-burning stove. That's because homeowners can save significantly thanks to a federal consumer tax crecit designed to encourage energy-conscious purchases. It can cover 30 percent of the cost of clean, fuel-efficient stoves and fireplace inserts, up to a maximum credit of $1,500.

"Fall is here, and most families will be looking for ways to cut their home heating bills," said Jack Goldman, President of the Hearth, Patio & Barbecue Association (HPBA). "Fireplaces and stoves have always been a great option for saving money because they reduce energy costs and add value to homes. But with this new tax credit, there's never been a better time to buy."

How It Works

The tax credit -- which can lower your tax bill on a dollar-for-dollar basis -- applies to stoves and fireplace inserts purchased between January 1, 2009, and December 31, 2010 that:

Burn a biomass fuel source like wood or renewable pellets
Will be installed during the eligibility period in an existing principal residence, not a newly constructed house or vacation or rental home
Meet a minimum 75% efficiency rating as certified by the manufacturer

Purchases of qualifying stoves and inserts can claim the credit on their federal tax return. These consumers should save their receipt and the manufacturer's certification that states the appliance they purchased is eligible. Installation and venting costs are included in calculating the credit's total value, as long as professional installation is required by the proper and safe operation of the stove.

Get the Facts

To help consumers learn more and find the right stove or fireplace insert for their home, HPBA has developed a special website -- www.hpba.org/taxcredit -- with helpful tools that include:

Tax Credit FAQ. Get answers to commonly asked questions about how the credit works, what qualifies and how much you can save.
Wood vs. Pellet. Learn the difference between appliances that use these two efficient and eco-friendly fuel sources.
Fuel Efficiency Calculator. Home experts estimate that stoves and inserts can reduce annual heating costs by 20 to 40 percent. To help consumers evaluate their options, HPBA developed an online calculator that approximates annual savings depending on your home's current heating source and the fuel you select.
Speciality Retailer Locator. HPBA members provide the expertise, personal service and product selection consumers need to make the right decision. Find the store closest to you by entering your zip code in HPBA's retailer locator.

"This tax credit offers consumers the best-yet opportunity to control home heating costs and support renewable energy," said Jack Goldman. "Today's stoves and inserts not only provide efficient heat, but are also environmentally friendly -- and the tax credit makes them extremely affordable."

SOURCE: Hearth, Patio and Barbecue Association

If you would like to read the entire guidance, IRS Notice 2009-53, Non-business Energy Property, it can be found on http://www.hpba.org/ or at www.irs.gov/pub/irs-drop/n-09-53.pdf.

Overall, this tax credit is an outstanding achievement for the biomass stove industry and will clearly increase demand for the products. Please consult your tax advisor if you have ANY questions about how this measure applies to your particular circumstance. More information on this tax credit will be made available as it is learned.