2021 – 2023 biomass stove tax

REGION – The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) will come into effect on Jan. 1, 2021 for qualifying purchases and installations completed on or after that date, through Dec. 31, 2023.

Credit amount: Creates a new tax credit of 26% of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moves down to 22% of purchase and installation costs in 2023 (under Sec. 25(D) of the U.S. tax code).

Qualifying products: Require qualifying products (any biomass-fueled heater) be at least 75% efficient per the higher heating value of the fuel that are used to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit.

How to qualify for the tax credit: Install a qualifying Central Boiler outdoor wood furnace (Classic Edge 360, 560, and 760) between Jan. 1, 2021 and Dec. 31, 2023; and claim the tax credit associated with your qualifying purchase and installation on your federal filing for the tax year.

This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. Central Boiler, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Central Boiler is not responsible or liable for the taxpayer’s ability to receive tax credits.

 

Submitted by New England Outdoor Furnace.

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