With the new Residential Energy Efficient Property Credit Consumers can take 26% of the cost for a new wood-burning stove or fireplace insert, including the appliance, venting, and installation in 2021-2022.
That is a big deal. Anyone who has considered purchasing a high-efficiency wood stove but held off due to the cost, now is the time to take advantage of the government program.
Wood-burning appliances can be used for supplemental or primary heating, and in power outages. Anyone who has gone through a power outage without heat will understand the importance of having a backup heating system.
stoves can be placed in almost any room. They are vented with a Class A
stainless steel chimney, or a masonry chimney with a stainless steel
flue liner. Fireplace inserts are installed in a masonry fireplace with
a stainless steel flue liner. Wood-burning fireplace inserts cannot be
installed into a manufactured firebox.
- Consumers buying highly efficient wood stoves will be able to
claim a 26% tax credit that is uncapped and based on the full cost of
the wood stove (including purchase AND installation)
- The 26% tax
credit is valid from January 1, 2021 through December 31, 2022. In
2023, the tax credit will remain in effect for the entire year, but the
percentage steps down to a 22% tax credit.
- Qualifying wood stoves must meet at least a 75% HHV efficiency value. Not all wood stoves qualify.
- You will claim your tax credit when you file your taxes on IRS form 5695 under “Residential Energy Efficient Property Credit “. You will need your purchase receipt (showing cost of product and installation). You will also need a manufacturer certificate stating that the stove qualifies for the credit and is at least 75 percent efficient HHV. These are available on the manufacturer website.
inspection of the current chimney must be done prior to the
installation of a wood-burning insert or stove using the chimney for
venting purposes. It must also be cleaned to remove any creosote. The
best time to have this done is in the spring or summer.
For more information visit www.chimkc.com.
__________________________________________________________Marge Padgitt is a chimney industry veteran. She is a CSIA Certified Chimney Sweep and NFI Woodburning Specialist. Marge is the President of HearthMasters, Inc. in Kansas City, Missouri. Reach her at email@example.com.