If you have recently purchased or are considering adding a new wood-burning stove to your home, Owens Chimney Systems has some good news for you. The Internal Revenue Service (IRS) has extended its $300 tax credit for qualifying biomass stoves through 2016. A biomass stove simply means a stove that burns either wood or pellets as fuel, but there are some restrictions involving efficiency ratings. Our staff knows exactly which stoves are eligible for this tax credit program and can help you select the best stove for your home from our inventory. We would like to tell you more about this tax credit program and what you must do in order to receive this credit on your income tax return.
Why is the IRS offering this tax credit program?
This program was put in place to encourage consumers to improve their homes’ energy efficiency by making energy-conscious purchases. If you purchase a wood or pellet stove between January 1, 2015 and December 31, 2016, you may be able to receive a $300 tax credit for you to use on either your 2015 or your 2016 tax return by claiming the credit on IRS Form 5695, according to the Hearth, Patio & Barbecue Association (HPBA).
What restrictions are involved with this tax credit?
In order to be eligible for the $300 tax credit, your wood or pellet stove must meet or exceed the 75 percent efficiency rating. This efficiency percentage was set in 2008 by the U.S. Congress in the Emergency Economic Stabilization Act.
What do I need to apply for this credit?
You will need the sales receipt, which shows that you purchased the qualifying stove during the approved time period. For your own personal tax records, you will also need the manufacturer’s certification that states your stove meets the qualified efficiency rating. When you purchase a wood or pellet stove from Owens Chimney Systems, we will provide you with both of these documents.
What should the manufacturer’s certification contain?
This document will list the name and address of the manufacturer, the identification of the class of qualified energy property, the make and model number of the stove, and a statement that the product meets the energy efficiency eligibility requirements. We will also ensure the manufacturer’s certification is signed as following: “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.” You will not have to attach the manufacturer’s certification to your tax return, but you will need to keep this document in your personal tax records in case you are audited.
To learn more about the $300 tax credit program for qualifying wood stoves, contact us at Owens Chimney Systems. Our staff is happy to guide you through this entire process.