2011 US Tax Credit Information

Information from the HPBA Website -

On December 17, 2010, President Obama signed a bill that extended many of the consumer tax credits into 2011 to help boost the slowly recovering economy. The tax credit for the purchase of a biomass-burning stove was extended, but with additional restrictions. The tax credit for 2011 is structured as follows: 1) a 10% tax credit, capped at $300, for a 75% efficient biomass stove; 2) the lower heating value (LHV) efficiency measure was removed; 3) the credit applies to purchase price only, not installation; and 4) tax credit is for 2011 only. HPBA encourages all members to check with their tax advisors for further clarity.

Some important points of the tax credit are:

• To be considered,  a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75%;
• Installation is no longer covered as of the 2011 amendment;
• This consumer tax credit is 10% (up to $300) for the purchase and installation of a 75% efficient heating appliance in 2011;
• This consumer tax credit is for 2011 only;
• This credit applies only to existing principle residences;
• Manufacturers must provide a certificate of qualification for each product as required in the guidance which can be obtained for the customer to use;
• Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification is not required to be attached to the tax return;
• If a manufacturer has documentation that a stove has already achieved the required efficiency rating, no further testing is required;
• The IRS has not stated that inserts are covered, or are not covered, but based on EPA’s practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts.

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