30% Federal Tax Credit Wood Stove Changeout & Incentive Program

A wood stove changeout program is a voluntary program initiated at the local, state or regional level that provides eligible communities incentives to positively impact air quality. Residents of participating communities can receive rebates, low/no interest loans and/or discounts to replace their old appliances, with newer, more efficient wood or pellet stoves and fireplaces. Beginning in 2023, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems may be eligible to claim a 30% tax credit – capped at $2,000 annually – based on the full cost (purchase and installation) of the unit. For any questions, please call our team at 423-657-2252.

What is this new tax credit?

Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is effect on January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.

Credit Amount: Creates a new tax credit of 30 percent of the purchase and installation costs (with a $2,000 annual cap with no lifetime limit) for tax years 2023 through 2032.

Qualifying Products: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel

-The EPA certified wood heater database may be referenced (not all products on the EPA list qualify. Look for products with efficiencies of at least 75%)

-A manufacturer certification statement attesting that product qualifies can also be relied upon

Models That Qualify

Ashford 20.2 Wood Stove Ashford 25 Wood Insert Ashford 30.2 Wood Stove Boxer 24 Wood Stove Chinook 20.2 Wood Stove Chinook 30 Wood Stove King 40 Wood Stove Princess 29 Wood Insert Princess 32 Wood Stove Sirocco 20.2 Wood Stove Sirocco 25 Wood Insert Sirocco 30.2 Wood Stove Neo 2.5 Insert LE Wood Insert Super LE Wood Insert Alderle T4 LE Wood Stove Alderlea T5 LE Wood Stove Alderlea T5 LE Wood Insert Alderlea T6 LE Wood Stove FP25 Arch LE Wood Fireplace FP25 LE Wood Fireplace FP30 Arch LE Wood Fireplace FP30 LE Wood Fireplace Neo 1.6 LE Wood Insert NEO 1.6 LE Wood Stove Neo 2.5 LE Wood Stove Summit Classic LE Wood Stove Summit LE Wood Insert Summit LE Wood Stove Super Classic LE Wood Stove Super LE Wood Stove Visa LE Wood Stove Vista Classic LE Wood Stove TN 10 Wood Stove TN20 Wood Insert TN20 Wood Stove TN40 Pellet Insert Dauntless Wood Stove Encore Wood Stove

To learn more about this Tax Credit, give our professionals a call or contact us here. We will be happy to guide you to the right stove or fireplace for your home that qualifies for the tax credit.