As an incentive to Americans to purchase energy-efficient heating appliances, the Internal Revenue Service (IRS) is offering a $300 tax credit for buying an approved wood or pellet stove from January 1, 2015 to December 31, 2016. This credit can be used on either your 2015 or 2016 federal income tax return. Owens Chimney Systems is excited about this offer because we also recommend using heating appliances that use less energy, and the fact that the IRS is rewarding consumers who purchase these stoves makes the deal even sweeter. We carry a variety of approved stoves and inserts for this credit, and we would like to tell you more about this tax credit so that you can take advantage of this generous offer.
What qualifies a stove to be approved to receive this tax credit?
According to the Hearth, Patio & Barbecue Association (HPBA), the biomass (wood or pellet) stove must be given at least a 75 percent efficiency rating from the U.S. Environmental Protection Agency (EPA). This percentage number was set by the U.S. Congress in 2008 as part of the Emergency Economic Stabilization Act.
Are wood and pellet fireplace inserts included in this program?
Although the IRS has not specifically stated whether or not inserts are included in this tax credit program, the EPA treats inserts and stand-alone stoves in the same manner, so manufacturers may choose to say that qualified inserts are included. Heating appliances that are definitely not included are open wood-burning fireplaces, hydronic heaters, and wood warm air furnaces.
How do I claim this tax credit on my income taxes?
If you are filing by paper, you will claim this credit on line 22a (residential energy property costs – energy-efficient building property) on the IRS Form 5695 (Residential Energy Credits). If you are filing online by using software like TurboTax or H&R Block, you will find where to file this credit under the “Credits” section of the Federal portion.
Do I need my receipt or anything else to claim this credit?
You do not have to send anything in with your return, but you do need to save your receipt and the manufacturer’s certification for your personal tax records in case you get audited. The manufacturer’s certificate will include the name and address of the manufacturer, the identification of the class of stove or insert, the make and model number of the appliance, a statement that the stove or insert is qualified and eligible, and a declaration that is signed by an authorized person to bind the manufacturer that states, “Under penalties of perjury, I declare that I have examined this certification statement, and to the best of my knowledge and belief, the facts are true, correct, and complete.” When you buy your qualified stove or insert from Owens Chimney Systems, we will give you both your receipt and this manufacturer’s certification.
Considering adding a new wood or pellet stove or insert to your home? Contact us at Owens Chimney Systems to see your options for qualified heating appliances to receive this $300 tax credit.