Tax Credit for Biomass Heating Appliances

The American Taxpayer Relief Act of 2012 (H.R. 8), signed on January 2, 2013 includes a “tax extender” for Internal Revenue Service Section 25C which provides a tax credit for qualifying biomass burning stoves.

This “Fiscal Cliff” tax package reinstated and extended the $300 tax credit for biomass heaters that are 75% efficient using lower heating value and was retroactively renewed to be effective January 1, 2012, expiring on December 31, 2013.

To Obtain The Tax Credit:

  1. A qualifying Nature’s Comfort outdoor furnace or pellet stove must have been purchased and placed in service between January 1, 2012 and December 31, 2013.
  2. Save the purchase receipt and the manufacturer’s certification statement for the furnace purchased.
  3. Claim the tax credit associated with a qualifying purchase on a federal filing for the 2012 or 2013 tax year.

Certification Statements:

Important Notes:

  1. The tax credit is for 10% of the amount paid for a qualifying product (installation costs cannot be included) up to a maximum of $300.
  2. The credit applies to a homeowner’s primary residence only.
  3. A tax credit is a dollar-for-dollar reduction subtracted from your tax liability. This means that $300 can be subtracted directly from tax that is owed or added to a tax refund.

This information is provided as a courtesy by Nature’s Comfort and may not be relied upon as a substitute for advice from a tax professional. Nature’s Comfort LLC is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Nature’s Comfort is not responsible or liable for any taxpayer’s ability or inability to receive a tax credit.

More Information

More information is available at the United States Department of Energy and at the Hearth, Patio, and Barbecue Assocation.

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