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!! Tax Credits from Bailout !!

Post in 'The Boiler Room - Wood Boilers and Furnaces' started by pybyr, Oct 20, 2008.

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  1. pybyr

    pybyr Minister of Fire

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    FYI, while I cannot give legal or financial advice to any of you, an acquaintance of mine pointed me to the fact that the recent bailout legislation contains a re-invigoration of various incentives, which, subject to some further looking, may help me get a credit for at least a portion of the cost of my Econoburn, since it happens to be EnergyStar certified!

    See

    Section 302 of the Bailout Bill

    http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:

    and then refer to the prior version of the tax credit in the Internal Revenue Code that this portion of the Bailout Bill revives and brings forward

    http://www.law.cornell.edu/uscode/search/display.html?terms=Nonbusiness energy&url;=/uscode/html/uscode26/usc_sec_26_00000025---C000-.html

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  2. muncybob

    muncybob Minister of Fire

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    it's to my understanding that not all Energy Star certified products will apply to the tax credit. From what I have read the water boiler/furnace must be AFUE greater than or equal to 95...and it speaks only to gas, oil or propane. I see no mention of wood as the medium for the energy?????
  3. pybyr

    pybyr Minister of Fire

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    here' s the part of section 302 that I referred to that creates the new category-- what I have not got my head around yet is which of the effective dates in Sec 302 applies to a sufficiently efficient wood boiler

    "
    SEC. 302. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) Extension of Credit- Section 25C(g) is amended by striking `placed in service after December 31, 2007' and inserting `placed in service--

    `(1) after December 31, 2007, and before January 1, 2009, or

    `(2) after December 31, 2009.'.

    (b) Qualified Biomass Fuel Property-

    (1) IN GENERAL- Section 25C(d)(3) is amended--

    (A) by striking `and' at the end of subparagraph (D),

    (B) by striking the period at the end of subparagraph (E) and inserting `, and', and

    (C) by adding at the end the following new subparagraph:

    `(F) 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.'.

    (2) BIOMASS FUEL- Section 25C(d) is amended by adding at the end the following new paragraph:

    `(6) 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.'.
    "
  4. muncybob

    muncybob Minister of Fire

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    interesting!! Can anyone clarify the dates? Here is what DSIRE web site says:
    Summary: The federal tax credit for energy efficient home improvements was established by the Energy Policy Act of 2005. After expiring on December 31, 2007, the credit was extended by The Energy Improvement and Extension Act of 2008 (H.R. 1424, Division B), and now applies to eligible equipment purchased between January 1, 2009 and December 31, 2009. Equipment purchased during calendar year 2008 is not eligible for the tax credit. In addition to extending the credit, H.R. 1424 modified the efficiency requirements for water heaters; removed the geothermal heat pump credit from 26 USC § 25C and moved it to 26 USC § 25D; and extended the credit to stoves that use biomass fuel and asphalt roofs with appropriate cooling granules.
  5. Ulybagger

    Ulybagger New Member

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    What's a thermal efficiency rating of 75?
  6. southland

    southland New Member

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    Here is more info on the $300 tax credit, copied from the first link below.

    Biomass Stove
    Stove which burns biomass fuel to heat a home or heat water.
    Thermal efficiency rating of at least 75%.
    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.

    Tax Credit = $300

    Manufacturer’s Certification Statement required.
    For tax purposes, save your receipt and the Manufacturer's Certification Statement.
    Use IRS Form 5695
    Must be “placed into service” between Jan. 1–Dec. 31, 2009


    http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
    http://www.energy.gov/taxbreaks.htm

    And the IRS info sheet.
    http://www.irs.gov/pub/irs-drop/n-06-26.pdf
  7. penfrydd

    penfrydd New Member

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    I wrote my congressman, John Olver, who confirmed: the wood boilers are biomass fueled, and the credits apply to purchases made in 2009, not 2008. Too bad.
  8. stee6043

    stee6043 Minister of Fire

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    Is it "purchased" date or "placed in to service" date? Surely we could all claim to have one last piece of plumbing that didn't get completed until January 1st, 2009...
  9. BrownianHeatingTech

    BrownianHeatingTech Minister of Fire

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    It will (I would assume) be based upon the date on the invoice.

    So, if you purchase a boiler directly, that would be the date.

    If you hire someone to install it, the date of the final payment is the "purchase" date (deposits don't count as purchases).

    Joe
  10. jebatty

    jebatty Minister of Fire

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    Not sure if this applies to wood boilers, but most of those tax credits only were available if you use a contractor/licensed installer, not available for self-install. Check it out.
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