2011 Federal Biomass / Woodstove Tax Credit
The government has extended the Tax Credit in 2011, but the amount of credit is much lower, changing to 10% of the price of the appliance only, not including labor, up to $300.
The qualifications are:
• The credit is for biomass heating appliances: pellet stoves, pellet inserts, wood-burning heating stoves, and woodburning fireplace inserts. • The appliance must be installed in an existing primary residence, not a new house or rental property. • The stove or insert must have a minimum efficiency rating of 75% as certified by the manufacturer. • The appliance must be an EPA approved biomass stove.
Homeowners should keep the manufacturer's certificate and invoice from the installer to give to their accountant and keep for their records, but do not need to file these items with their tax forms. A copy of the certificate can usually be obtained from the manufacturer's website. This credit reduces the amount of tax you owe for 2011 dollar for dollar. The credit is a reduction of total income tax at the bottom of your return, up to $300. Consult your tax accountant for details.