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Showing posts with label tax credit. Show all posts
Showing posts with label tax credit. Show all posts

Tuesday, June 7, 2022

Everyone Needs a Wood Stove for Emergency Heating!

With the economy in shambles and the cost of everything going up, including oil, gas, and electricity, the one piece of advice I can give to people is this:


Everyone needs a wood-burning stove or fireplace insert in their home for emergency heating and NOW is the time to buy!
 
Wood-burning stove insert by Regency

  •  Wood-burning stoves work without the use of electricity or fans (unlike gas furnaces or pellet stoves).
  •  Wood stoves and inserts produce TWICE the amount of heat (BTU's) than gas stoves or inserts!
  •  Fuel is readily available either by using your own trees on site or purchasing through a firewood dealer. Tip: Buy NOW.
  •  No electricity is needed for a wood stove or insert to work! In case of emergency when the power is out you'll be able to stay in your home instead of going to stay with friends or family or going to a hotel.
  •  With a freestanding stove you can cook on the top if needed.

Freestanding wood-burning stove by Hearthstone
Use a wood-burning stove during fall and winter as a supplemental heating source to save money and provide a more comfortable, even heat. Radiant heat from a wood stove or masonry heater has more health benefits than a gas furnace or electric baseboard heaters.

Good quality wood stoves aren't inexpensive - but they are worth the investment. A good stove will last many years. Note: beware of box store wood stoves that have no or limited warranty and may burn out after a few seasons. 

New EPA approved wood-burning stoves and inserts are 75%+ efficient which means that most of the heat is staying in your house rather than going up the flue as with a standard open fireplace. 

 
Bonus: Get a TAX CREDIT for an efficient wood stove or insert up to 26% in 2022 and that includes labor and all materials!

Call us if you are in the greater Kansas City area or another professional chimney sweep our hearth dealer to discuss upgrading your inefficient open fireplace to a high-efficiency wood-burning insert, or if no fireplace is available you can have a freestanding wood stove along with a Class A chimney or stainless steel chimney liner installed. Note: These appliances can ONLY be installed in MASONRY chimneys or with a CLASS A chimney.

A word about GAS: If you have a gas-burning insert or stove, it will likely work with no power available. They just produce HALF the amount of heat as a wood-burning appliance.

Note: Blowers on gas or wood-burning appliances will NOT work unless you have a generator. But they will still provide heat. 
 
Find a professional installer at www.nficertified.org or www.csia.org. 

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Marge Padgitt is a chimney industry veteran and author of Wood-Fired Heating and Cooking and the Chimney Pro's Resource Book. She is a speaker, talk show guest, and instructor. Visit www.chimkc.com or www.hearthmasters.net for more information.

Monday, August 2, 2021

Efficient Heating with Wood and a Tax Credit to Boot!

Have your cake and eat it too, as they say. Homeowners who purchase a high-efficiency wood-burning appliance in 2022 and 2023 can take advantage of not only efficient and clean-burning heat but receive a nice tax credit as well.

People living off grid or who aspire to a self-sufficient lifestyle love using wood-burning appliances for heating, and in some cases, cooking. Anyone who heats with wood will attest to the fact that it is much less expensive than forced air appliances or electric heating, especially if they can fell trees off of their own land, but the benefits don’t end there. The healing radiant energy produced is a welcome effect for arthritis and fibromyalgia sufferers. Not to mention that sitting in front of a toasty fire in the middle of winter just cannot be beat.

Freestanding stove
Wood-burning freestanding stoves can be installed in almost any location in a home and use a Class A metal chimney or can be connected to a masonry chimney with a stainless-steel flue liner. Wood-burning fireplace inserts may be installed into a masonry fireplace with a masonry chimney with the use of a smaller stainless steel flue liner. They cannot be installed in prefabricated metal fireplaces or use a prefabricated metal chimney. This applies to pellet stoves and inserts as well with a different type of vent.

Anytime changes are made to a fireplace a Level 2 camera inspection is required in most jurisdictions and recommended in any case. A professional CSIA Certified Chimney Sweep should do this inspection. Find one at www.csia.org.

Site built masonry heater by
Gene Padgitt

Masonry heaters are site-built masonry appliances with interior channels that trap heat. The
masonry absorbs the heat, then releases it into the room. Houses with open floor plans are best suited to this type of heater since it does not use fans or ducts to distribute heat. Radiant heat is emitted from all four sides of the appliance. There are kits manufactured which may include only the heater core, or the entire finished product. Heater masons also build masonry heaters without kits.  Masonry heaters are the most efficient type of wood-burning appliance, and they use 2/3 less wood than a high-efficient wood-burning stove. For more information visit www.chimkc.com or www.mha-net.org.

In recent years, the wood-burning industry has modified and improved their products to the point that they now produce extremely efficient appliances that burn clean with little emissions. Some are better than others, but appliances with an efficiency rating of 75% or higher and approved by the EPA (Environmental Protection Agency), will provide home heating and be eligible for the credit. Older, less efficient appliances do not qualify for the tax credit.

Appliances that were made prior to 1989 likely do not meet the earlier EPA standards and therefore, are not allowed to be installed in homes. So, think twice before purchasing a used woodstove.

The U.S. Biomass Tax credit allows for a tax credit of 26% of the purchase and installation costs for eligible products purchased and installed between January 1, 2021 and December 31, 2022. Appliances must have an efficiency rating of 75% or more.

For eligible products purchased and installed between January 1, 2023 and December 31, 2023, the tax credit is reduced to 22% of the purchase and installation costs. Any eligible product purchased in 2020 but installed in 2021, can be claimed on a 2021 tax return. Products must be claimed on the tax return year in which the product installation is complete. Keep your receipts for your accountant and register your appliance on the manufacturer website.

The nice thing about this government offer, which likely will not be repeated, is that not only is the appliance itself covered in the Tax Credit, but the chimney pipe or flue liner and labor for installation as well. This can add up to a hefty amount.

Now for the not-so-good news: Be prepared for a long wait time for your new appliance since manufacturers are having a hard time keeping up with the demand. And prices on everything have gone up and will likely continue to climb. So, order that new appliance now even if you have to wait a few months for the installation.

Marge Padgitt is a chimney industry veteran and author of Wood-Fired Heating and Cooking. Reach her at hearthmasters.office@gmail.com. 

Monday, February 1, 2021

26% Tax Credit for Wood-Burning Stoves is a Big Deal

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.

Freestanding 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. 

    Hearthstone
    freestanding stove

  • 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. 

An 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. 

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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 hearthmastersboss@gmail.com.