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30% Tax Credit
Don't miss out! You have 112 days left to take advantage of the federal energy tax credit (expires 12/31/2010). On June 1, 2009, the Internal Revenue Service (IRS) issued its guidance for the 30% consumer tax credit (up to $1500) for the purchase and installation of a 75-percent efficient biomass-burning stove. In a letter to the IRS in February 2009, HPBA asked for specific guidance on a number of issues, but we are confident that this minimal guidance is sufficient. We understand that the IRS is not asking for further testing if a stove manufacturer has already self-certified using valid test data. Some important points of the tax credit are: * To be considered, a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75% as measured using a lower heating value; * Installation is covered, as long as it is a requirement for the stove’s proper and safe functioning; * This consumer tax credit is 30% (up to $1500) for the purchase and installation of a 75% efficient stove, and is available until December 31, 2010; * The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a new stove, then he will have $600 to purchase additional energy saving products in the same tax year; * If a taxpayer uses the entire $1500 tax credit on a competing product then they cannot use it for a biomass stove in that same tax year; * This credit applies only to existing principle residences; * Manufacturers must provide a certificate of qualification for each product as required in the guidance which can be obtained for the customer to use; * Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification is not required to be attached to the tax return; * Prior purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers a certificate of qualification for the product; * If a manufacturer has documentation that a stove has already achieved the required efficiency rating, no further testing is required; * The IRS has not stated that inserts are covered, or are not covered, but based on EPA’s practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts. |
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For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life. John 3:16 Copyright 2005 Lifestyle Energy. All rights reserved. |
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