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$300 Federal tax credit.......

Post in 'The Hearth Room - Wood Stoves and Fireplaces' started by Shari, Jan 4, 2009.

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  1. Shari

    Shari Minister of Fire

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  2. Summertime

    Summertime New Member

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    I see my new gas tankless waterc heater is also eligible. Thanks for the link..
  3. karl

    karl Minister of Fire

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    They have to be 75% efficient which kicks out most wood stoves, unless the manufacturers can some how get a few extra percent out of them. PE says my Summit is 72.5% efficient.
  4. Todd

    Todd Minister of Fire

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    This tax break doesn't specify what efficiency rating their using, is it the EPA default or the independent lab test? EPA defaults are 63% for all non cat stoves and 72% for all cat stoves. Independent tests are much higher and just about all cat stoves are over 75%.
  5. Shari

    Shari Minister of Fire

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    Todd,

    I agree - we need clarification on this.

    But then when we see ratings like these, are these ratings based on independant lab test results?

    VC Catalytic stoves:
    Defiant 82.4%
    Encore 76.7%
    Intrepid II 81.1%

    VC Non Catalytic stoves:
    Defiant NC 69%
    Resolute Acclaim 72.1%
    Encore NC 68%
    Aspen 69.5%


    Shari
  6. Todd

    Todd Minister of Fire

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    Yes, those are independent lab tests and if I were to buy a new stove I'd go by those numbers when applying for the rebate.
  7. ken999

    ken999 New Member

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    Yeah, but they put the "**" next to the rating due to varying wood sources. If we can find some documentation or get PE to clarify their number, we might be in.
  8. Todd

    Todd Minister of Fire

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    Add 10% efficiency for exposed stove pipe. ;-)
  9. SlyFerret

    SlyFerret Minister of Fire

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    Even if my 30 qualified, looks like it wouldn't make the cut, as it was put "in service" at the end of last January.

    -SF
  10. pen

    pen There are some who call me...mod. Staff Member

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    I took advantage of this on the taxes last year for the insulation that I added to the attic.

    pen
  11. Shari

    Shari Minister of Fire

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    Not necessarily questioning you, Todd, but where did you get this info from?

    Shari
  12. savageactor7

    savageactor7 Minister of Fire

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    For $300 the Feds can go pound salt...they just want to know who has them so they can tax us for carbon credits. And it's not fair that the poor people have to pay all the pipeline taxes and FET's and we don't but stay warmer.
  13. Todd

    Todd Minister of Fire

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    In some of the debates about freestanding stoves verses inserts I remember Webmaster stating " you can add 10-15% efficiency to a free stander because of the stove pipe". I doubt the IRS would go for it, but you never know, just say Craig Issod says so. :lol:
  14. gawebster

    gawebster Member

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    There is no current Federal Standard for Wood Burning Appliance Efficiency. You can forget about applying any published efficiency from manufacturers' brochures. All wood stoves will be required to be tested to this new efficiency standard once it is established.

    Gary Webster
  15. Shari

    Shari Minister of Fire

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    Could you quote your reference for us Gary?

    Shari
  16. gawebster

    gawebster Member

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    All can report is it is my understanding that the Efficiency standard is being based on one being used in Europe. I know Omni Test Labs in Oregon is working with the Federal Government and the Harth industry to establish this standard and set the test requirements that all manufacturers' will need to meet - this is for wood stoves only. Efficiency standards already exist for Pellet appliances.

    Also remember, even though the Energy Credit has passed Congress, funding for this program which needs to be set through the Department of Revenue has not.

    We'll all find out more as the New Year progresses

    Gary
  17. DAKSY

    DAKSY Patriot Guard Rider Staff Member

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    Here's a little more info from HPBA:


    2009 Tax Credit Information – Important Details



    Signed into law on October 3, 2008, a $300 consumer tax credit for the purchase of a 75% efficient biomass stove in 2009 was included in the Emergency Economic Stabilization Act of 2008. The Hearth, Patio & Barbecue Association (HPBA) and the Pellet Fuels Institute (PFI), succeeded in including the tax credit to help consumers fight rising home heating costs. Pertinent language in the legislation reads as follows:



    SEC. 302. CREDIT FOR NONBUSINESS ENERGY PROPERTY

    · "from January 1, 2009 to December 31, 2009"

    · "a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent."

    · "BIOMASS FUEL- The term 'biomass fuel' means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers."



    Guidelines for this tax credit are being determined by the U.S. Department of the Treasury and the Internal Revenue Service (IRS). Although the tax credit takes effect January 1, 2009, the guidelines for the credit should be issued later in January. HPBA will keep the industry informed on the progress and details of this tax credit. For the latest information, check the HPBA website, www.hpba.org, for critical developments.



    Tax Credit FAQs



    Q: What is a federal consumer tax credit?

    A: Consumers claim the credit on their federal income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay.



    Note: With regard to tax credits vs. tax deductions, in general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions - such as those for home mortgages and charitable giving - lower your taxable income.



    Q: When does this tax credit go into effect and how long will it last?

    A: The tax credit goes into effect January 1, 2009 and is valid only for the purchase of a qualifying wood or pellet stove in 2009. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2009. If a retailer sells a stove before the list of qualifying stoves is made public, the retailer must keep a complete record of the sale (name and full contact information) so the purchaser can be notified.



    Q: Who is determining the tax credit guidelines for the qualifying units?

    A: The Department of the Treasury, and specifically, the IRS.



    Q: Will other wood and solid-fuel appliances (like inserts, EPA-certified wood-burning fireplaces and outdoor wood heaters) qualify for the tax credit?

    A: We do not know at this time. Right now, as the legislation is written, only 75% efficient stoves are included. HPBA requested that inserts be included, but no confirmation has been received.



    Q: Do all pellet stoves qualify for the tax credit?

    A: We do not know at this time. In a letter to the IRS, we recommended that all pellet stoves be included because EPA has previously assigned a default efficiency rating sufficient to qualify pellet appliances. However, we do not have a confirmation from the U.S. Department of the Treasury or the IRS about whether they will accept or reject this recommendation.



    Q: Why was 75% efficiency selected?

    A: The 75% efficiency was designated by the U.S. Congress in 2005 as part of the Energy Policy Act and was used again for this tax credit. Unfortunately, with a truncated timeline of the legislation that included this tax credit, we were not able to change the number to reflect a more realistic efficiency rating.



    Q: How will the 75% efficiency requirement be determined?

    A: HPBA has provided the IRS with extensive information on product efficiency. The association recommends using the more realistic Lower Heating Value (LHV) method rather than the Higher Heating Value (HHV) that is generally used as an efficiency measurement for gas products. This would include a broader range of efficient biomass products for the tax credit. We are waiting for the IRS rule on the efficiency testing.



    Q: How will a consumer know that a product is certified?

    A: The manufacturer will have to certify that its product meets or exceeds the IRS efficiency requirements. A manufacturer's certification is a signed statement from the manufacturer certifying that the product qualifies for the tax credit. The IRS encourages manufacturers to provide these certifications on their websites to facilitate identification of qualified products. Tax payers must keep a copy of a certification statement for their records, but do not have to submit a copy with their tax return.



    Q: What should a retailer and consumer do while waiting for qualifying information?

    A: Keep exact records of any sale or purchase. It is imperative that retailers keep records of sales and buyers should save all receipts for payment along with stove manufacturer and model information.



    HPBA will keep the industry up-to-date on all developments on its website, www.hpba.org.
  18. Easyellis8

    Easyellis8 Member

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    Todd, the newer model of the fireview might be eligible for the break; remember that Woodstock is working on making the stove more efficient.
  19. Shari

    Shari Minister of Fire

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    .........and there's the scoop! Thanks, Daksy!

    Shari
  20. Danno77

    Danno77 Minister of Fire

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    but all of this really only matters if you are audited. (watch, the feds are probably monitoring this and I'll be audited should I ever apply for this tax credit using a stove).

    I applied for an energy savings credit for 2007 taxes and most of that was insulation. I remember looking a the numbers on my new fridge, cooking stove, etc.

    The paperwork is shoddy at best and doesn't really require you to list any revealing information that someone could decipher by just looking at the paperwork. In most cases they'd have to type in your model number find that actual stove listed on the internet and verify it's specs, THEN come to your house and look at your receipt and compare that to the stove you have installed. I don't see them doing that UNLESS you are being audited.

    I'm not saying anyone should be dishonest, I'm just saying that hopefully you utilize the correct numbers in determining if you qualify for this credit, but if you made a mistake, you might never know unless you were audited by the IRS
  21. Todd

    Todd Minister of Fire

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    I asked them awhile ago and they told me they will be looking into it, because the Fireview has tested as high as 80% in independent lab.
  22. Easyellis8

    Easyellis8 Member

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    Great! Hopefully you and other woodstock owners will be eligible for the break; I would not turn my head at $300.00.
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