2021-2023 Biomass Stove 25(D) Tax Credit

Tax Credit section and date:

The new US tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) valid from January 1, 2021 to December 31st, 2023.

Qualifying Products:

The new tax credit applies to the purchase of all qualifying biomass-fueled heaters on installations completed prior to December 31, 2023. Qualifying products include 2020 EPA certified wood stoves or inserts with a listed efficiency of 75% or better.

Any qualifying product ordered in 2020, but not installed and paid for until 2021, qualifies for the new credit under Section 25(D) on a 2021 tax return. Products may be claimed on the tax return year in which the purchase and installation is completed.

Credit Amount:

The new tax credit is 26% of the purchase and installation costs, including labor, for tax years 2021 and 2022 & 22% for 2023. (with no cap or lifetime limit).

Note: Please consult your Tax Advisor, prior to purchase, to confirm your eligibility for this tax credit.