Consumer Tax Credit Extended for Biomass Appliances for 2012/2013

  • Active since 1995, is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.

    We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.

    We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
Not open for further replies.
No No No take the credit and you get more back
Wow I just wrote no no no in a thread I get that from my best half
So Take the credit if you itemize or not. Say your cost of stove was 2500 you get 10% back 250.00 and also cost of installation and all supply's up to 500 dollars
Now I'm confused.... I thought you meant that it's a credit that will reduce what you owe. We always get a refund. So this will give us a bigger refund?
Now I'm confused.... I thought you meant that it's a credit that will reduce what you owe. We always get a refund. So this will give us a bigger refund?
Yes you get a larger refund
See post 7 on this thread for more questions and answers
  • Like
Reactions: The Ds
Now I'm confused.... I thought you meant that it's a credit that will reduce what you owe. We always get a refund. So this will give us a bigger refund?
@ the Ds,
I hope I didnt confuse you more. You said you get a refund so you do pay in taxes. If you get back 100% of what you paid in for the year than you dont qualify meaning you paid in lets say 5000.00 and after all of your deductions you get back the 5000.00 highly unlikely but there are ways to do it
but if you only get back in a refund say 4000.00 you did owe taxes and you can get the credit

To take the time to get this credit is less than the time to stack a ton in the basement
Yep, we read the link from post #7 in this thread and it all made sense. Yes, we pay in. No, we don't get it all back. Looks like we'll have an additional $280 coming our way :)

Thanks again for your help!
As a side note, if you took advantage of this tax credit in previous years, you must enter the amount you were credited to determine how much, if any, of this tax credit you qualify for. I had originally taken advantage of the biomass credit in 2010 when I purchased my XXV, and had to enter that amount with claiming my Mt Vernon. Essentially, nullifying my refund...
Good luck. i tried to get my tax credit for a new stove and couldnt. they said i used up my lifetime tax credit on the new windows i bought the previos year.
just a heads up I just tried to claim the credit which it would only give me 150 back and I was not allowed to e-file. Would have to send all paperwork into the IRS. I figure screw it and deleted it. Not worth the hassle. But to think about it 150 would almost buy a ton of pellets.
The government (EPA) has assigned an efficiency of 78% to all pellet stoves it has listed.
The IRS will not be processing returns that are claiming the tax credit until late Feb or sometime in March. During the height of the next debt limit debate, so I expect that my refund will be held hostage as a bargaining chip in that debate.:mad:
It's nice that the US Feds recognize biomass efficiency - still waiting for the Canadian feds to figure it out but likely will not happen as the current Prime Minister is from the west (land of the oil sands) - they recognized high efficiency oil or ng but not biomass burners. Large companies also get incentives for moving to biomass - when's my turn:(
Boo Boo's Q&A Link.

January 1, 2013: Wood Still Good, says the Fed

As part of the “fiscal cliff” package that passed Congress on January 1, 2013, the expired 2011 tax credit for energy efficient biomass-burning appliances was reinstated for 2013. The package provides a 10 percent tax credit, up to $300 in value, on the purchase of a qualifying wood or pellet-burning product. The tax credit is subject to a $500 “lifetime limit” and applies retroactively to appliances purchased between January 1, 2012 and December 31, 2012.

2012 - 2013 Biomass Tax Credit Extension FAQ's

Q: How does the new 2013 extension of the Recovery Act affect the purchase of wood stoves?
A: If you purchased and installed a new, qualifying biomass (wood or pellet) stove between January 1, 2012 and December 31, 2012, you can take a credit against your 2012 taxes totalling 10% of the purchase price, up to $3000 (maximum credit $300). The credit can also be taken on your 2013 tax return, for qualifying biomass products purchased between January 1, 2013 and December 31, 2013.

Q: So, what does it take for a stove to qualify?
A: The stove must be new, must burn biomass fuel, must achieve a thermal efficiency rating of 75% or greater, and must be purchased and put into service by Decemer 31, 2013.

Q: Could I buy more than one stove and get a 10% credit for each of them on this program?
A: Yes, if all are installed in your principal residence, up to the credit ceiling of $300.

Q: So, I could buy new stoves for the new house I'm building, my summer cabin and my rental house for a total of up to $3000, and get a 10% credit (up to $300) for the total?
A: Nope, the credit only applies to stoves installed in existing principal residences. Your new house, summer cabin and rental don't qualify.

Q: Does this program apply only to wood stoves?
A: The 10% tax credit also applies to other biomass appliances, such as pellet and corn stoves, as long as they achieve at least 75% thermal efficiency. For more information, click here.

Q: What if I spend $4,000 on my new stove? 10% would be $400. Would I get the $400?
A: Nope, the tax credit ceiling on the total of all biomass appliances is $300.

Q: Will this be some sort of deduction applied to my total wages, like a medical deduction?
A: This is much better: the credit comes straight off the bottom line on your return.

Q: Let's say I install a new $1595.00 wood or pellet stove in 2012 or 2013 (Tax Credit $159.50) and I end up owing $159.50 taxes for that year. How much do I pay?
A: Nothing. Your $159.50 Biomass Tax Credit will cancel out your $159.50 tax obligation.

Q: What if I have a $500 tax refund coming back?
A: You get your refund, plus the $159.50 Biomass Tax Credit on your new purchase. Your IRS refund check will total $659.50.

Q: What if I only paid $100 in taxes last year? Do I still get my $159.50 Tax Credit?
A: Nope, you get $100. The credit cannot exceed the amount of taxes you paid in.

Q: I am on social security and pay no taxes, can I get the credit?
A: Nada. The credit is only against taxes you paid in (or still owe) for the year you put the stove in service.

Q: I purchased a $2500 wood stove for my home in 2011, and received a tax credit for $250.00. We've moved, and are now considering a $3000 wood stove for this house. Can I claim the $300 tax credit on my 2013 return?
A: Nyet. There is a lifetime limit of $500 on the tax credits. You've already taken $250, so you only have $250 still available.

Q: Do all wood and pellet stoves qualify?
A: Only new stoves that achieve 75% minimum efficiency rating qualify for the tax credit.

Q: I checked the EPA label on the stove we want, and the efficiency rating was only 63%. Are we out of luck?
A: You might be OK. For some obscure reason, the EPA arbitrarily assigns an efficiency of 63% to all non-catalytic wood stoves, and 72% to all catalytic wood stoves. The real number is a result of actual efficiency testing, and can be viewed on the manufacturer's website. For a more detailed explanation, click here.

Q: What if I buy a wood or pellet stove second-hand? Can I take the credit?
A: Negative. The law specifies that the credit can only be applied to the purchase and installation of new stoves.

Q: Are you sure? I found the original bill online at , and it doesn't say anything about new or used.
A: It helps to have a magnifying glass and a working knowledge of legalese, but it's there alright, in Part 3, Section 2 .05 (1):
"A taxpayer may claim a credit... only if each of the following requirements is satisfied:
(b) The original use of the item commences with the taxpayer."
If you buy a used stove, you're not the original user, and you can't claim the tax credit.

Q: What about the hearth, stovepipe, chimney parts & labor I'll need to complete the installation? 10%?
A: It appears that, in the 2012-2013 version, the 10% credit applies to professional installation costs required for the proper and safe operation of the stove.

Q: How do I prove to the IRS that I've purchased a qualified stove? Do I send anything in with my tax return?
A: Yes, you must fill out Form 5695, which you can download at Your credit goes on line 3a. Save your receipt for the stove and keep it in a safe place along with the Manufacturer's Certificate of Qualified Energy Property. You can download or print Pacific Energy's certificate here, the Bis Ultima and Tradition CE certificates here, and Hearthstone's certificates here.
Remember, if you've used this credit before it carries over to this year decreasing your credit amount.

Insulation qualifies too. Many ways to get this credit.
Anyone on here use the free version of Taxact online and had any luck in finding a place to enter a biomass credit for buying a pellet stove? If so, where did you find it?
Wish I could get the credit if I bought a house with a stove ;)
Not open for further replies.