2009/2010 Biomass Tax Credit

Included in the 2009 Economic Stimulus legislation signed into law by President Obama on February 17, 2009, is a 30% (up to $1,500) consumer tax credit in 2009 and 2010 for the purchase of a 75% efficient biomass-burning stove as measured using a lower heating value.

The tax credit provisions in this new legislation contain improvement amendments to the legislation passed in October 2008. The major changes made were an extension of the credit to 2010 and an increase of the credit from $300 to 30% of the total cost up to a maximum of $1500.

Guidelines for determining what stoves meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products are determined by the U.S. Department of the Treasury and the Internal Revenue Service (IRS).  The tax credit took effect January 1, 2009, though the IRS has not issued the guidelines. These guidelines are expected by March 31, 2009, however the credit applies to all qualifying stoves sold in 2009 and 2010.

Frequently asked questions

Q:  Which Stoves models are approved for this credit?
A:  At this time, the IRS has not released the guidlines for determining efficiency.  Since efficiency has never been a required certification by the US EPA, most published stove efficiencies are only estimates.  Most Suppliers has always estimated the efficiency of each stove to be around 75%-80%.  We are working diligently to certify all Stove models to 75% or better efficiency.

Q:  When does this tax credit go into effect and how long will it last? 
A:  The tax credit goes into effect January 1, 2009 and is valid only for the purchase of a qualifying biomass-burning stove in 2009 and 2010.  The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010.  If a retailer sells a stove before the list of qualifying stoves is made public, the retailer must keep a complete record of the sale (name and full contact information) so the purchaser can be notified. 

Q:  How will a consumer know that a product is certified?
A:  The manufacturer will have to certify that its product meets or exceeds the IRS efficiency requirements.  A manufacturer’s certification is a signed statement from the manufacturer certifying that the product qualifies for the tax credit.  The IRS encourages manufacturers to provide these certifications on their websites to facilitate identification of qualified products.  Tax payers must keep a copy of a certification statement for their records, but do not have to submit a copy with their tax return.

Q:  What should a retailer and consumer do while waiting for qualifying information?
A:  Keep exact records of any sale or purchase.  It is imperative that retailers keep records of sales and buyers should save all receipts for payment along with stove manufacturer and model information.

If you have any questions about the 2009/2010 Tax credit, please call us at 775-348-9600