Energy Policy Act of 2005

[Swamp Fox]

Last year, Congress passed the "energy Policy Act of 2005." There are sections in there regarding various "rebate programs"/(tax credits ?) for energy effecient appliances, including "biomass" heating appliances. Biomass is defined in the act as "...any organic matter that is available on a renewable or recurring basis, including agricultural crops and trees, wood and wood wastes..." It also states that "Rebates provided under the program...shall be in an amount not to exceed the lesser of (A) 25 percent of the expenditure made by the consumer; or (B) $3000. Does this act mean that if you replace an older wood stove with a new energy efficient wood stove for heating your house, you will be entitled to the rebate? The Act states specifically it will include refrigerators, dish washers, windows, etc. But it did not specifically mention wood stoves. I'm thinking they are included. What do you think?

 

[Shane]

I would think so. I know that pellet stoves are.

 

[babalu87]

You didnt think the Federalies would actually promote something that big oil couldnt profit from did you?

What is the status of tax credits for corn, pellet or wood-burning stoves?

Under the 2005 Energy Act, there are no provisions for a credit for these types of heating units. A rebate may be instituted depending on federal appropriations. For more information, see (broken link removed to http://www.pelletheat.org/2/index/bass.html).

SOURCE:
(broken link removed to http://www.energytaxincentives.org/tiap-contact-us.html)

 

[Shane]

Oh, last I heard I thought they appliied. Obviously not though. That's too bad, promoting alternative energy should be a priority. What exactly did they mean by biomass then? Were they refering to larger commercial applications?

 

[wg_bent]

Oh, last I heard I thought they appliied. Obviously not though. That's too bad, promoting alternative energy should be a priority. What exactly did they mean by biomass then? Were they refering to larger commercial applications?

My accountant dug into this and found nothing that a home owner could apply.

 

[cbrodsky]

Oh, last I heard I thought they appliied. Obviously not though. That's too bad, promoting alternative energy should be a priority. What exactly did they mean by biomass then? Were they refering to larger commercial applications?

My accountant dug into this and found nothing that a home owner could apply.

From what I've read, there are great incentives for solar energy - especially on the relatively low cost hot water systems. The catch is if you pay alternative minimum tax (AMT), you don't get the federal deduction. Pretty lousy given that the states most prone to AMT also contain some of the most progressive programs to push solar options, along with a culture more likely to support such initiatives. This also makes the federal credit harder to get for families that are heavier energy users - people with kids are more prone to AMT and more likely to lose the tax credit.

In NY state, you can first get 25% of the cost back, and then federal gives you 30% of the cost back in tax credits - not deductions - net is you can buy a $9K solar water heating system for half price. (above that, some of the credits start to cap out) And from what I've seen, they are often much less expensive than that, giving you a very rapid payback if you qualify for the tax credits.

Now why do woodburners care?

My analysis of oil use before and after putting in the wood stove has shown that while we are on track to save about $1500 this year on oil, there is a lot more expense we could cut in domestic hot water use. I was surprised to see how much that tankless coil can cost when oil is > $2/gallon, so solar hot water may be the perfect complement to the woodstove.

-Colin

 

[gawebster]

This only applies to Pellet Heaters (Biomass) and will not include woodstoves. To date the Federal Government has not appropriated ANY funds to pay for this program. If (and its a big if) it does it will be boom time for Pellet Stove manufacturers. Many are gearing up production in the hope the funding is approved.

Gary