New tax credits for 2021

71montess

New Member
Mar 27, 2021
28
Base camp
A little background on me, not a certified stove installer, I’m a master plumber in Massachusetts( highly up our buts with regulations) and always follow the installation instructions. I’ve run metalvent and all fuel flues in my 30+ years in plumbing. I’m building my own house, my third, and will be installing and building the alcove for a Blaze King wood stove. I’m totaling up a bit more than $7000.00 before labor for the pipe, fittings and stove . Will be looking at the 26% tax credit. My question is, as labor can be included, can I charge , and put it into the total , My Labor ?
 
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BKVP

Minister of Fire
A little background on me, not a certified stove installer, I’m a master plumber in Massachusetts( highly up our buts with regulations) and always follow the installation instructions. I’ve run metalvent and all fuel flues in my 30+ years in plumbing. I’m building my own house, my third, and will be installing and building the alcove for a Blaze King wood stove. I’m totaling up a bit more than $7000.00 before labor for the pipe, fittings and stove . Will be looking at the 26% tax credit. My question is, as labor can be included, can I charge , and put it into the total , My Labor ?
This came up previously in 2008. The IRS ruled that self performed installs do not allow for labor credit. Talk with your accountant if you need to.
 
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John Ackerly

Burning Hunk
I noticed the vendor for my cookstove uploaded a document certifying that my wood burning appliance is eligible for the tax credit. My Morso 2b Classic is certified at 83% efficient at nominal output. Does it matter when the appliances were installed? The Morso was December 2018 and the cookstove was November 2019. I didn't know about the previous $300 credit.
The efficiency has to be measured using HHV, which is how its done on the EPA list. Many manufacturers, and all European ones, use LHV, which makes them appear to be more efficient. So that Morso at 83% should not be relied on. Check it against the EPA list.
 

BKVP

Minister of Fire
I noticed the vendor for my cookstove uploaded a document certifying that my wood burning appliance is eligible for the tax credit. My Morso 2b Classic is certified at 83% efficient at nominal output. Does it matter when the appliances were installed? The Morso was December 2018 and the cookstove was November 2019. I didn't know about the previous $300 credit.
Spacebus...The 25C Tax Credit may or may not apply to your 2019 and 2018 purchases. The newer tax credit, 25D, went into effect on January 1, 2021. Purchases/completed installs for 25D began 01/01/2021 and end 12/31/2023. (2023 seeing a reduction in percentage)

You need to know the HHV value of efficiency for your prior two units. Contact the manufacturer. Then, you can look at the EPA list to verify the efficiencies. You should also download or obtain a certificate of compliance from the manufacturer for your tax records. Assuming you have already filed tax years 2018 and 2019, you would need to file amended returns. It may or may not be worth the effort for the $300 credit that may or may not apply to your 2 prior purchases.

Always defer to your CPA or accountant.

BKVP
 

SpaceBus

Minister of Fire
Nov 18, 2018
5,749
Downeast Maine
Spacebus...The 25C Tax Credit may or may not apply to your 2019 and 2018 purchases. The newer tax credit, 25D, went into effect on January 1, 2021. Purchases/completed installs for 25D began 01/01/2021 and end 12/31/2023. (2023 seeing a reduction in percentage)

You need to know the HHV value of efficiency for your prior two units. Contact the manufacturer. Then, you can look at the EPA list to verify the efficiencies. You should also download or obtain a certificate of compliance from the manufacturer for your tax records. Assuming you have already filed tax years 2018 and 2019, you would need to file amended returns. It may or may not be worth the effort for the $300 credit that may or may not apply to your 2 prior purchases.

Always defer to your CPA or accountant.

BKVP
Sounds like it isn't worth the headache, thanks for answering my questions.
 
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cincyguy72

New Member
Feb 4, 2021
4
Cincinnati
The EPA list is difficult to sort through, is it possible for some industrious member of this forum to keep a list of freestanding/inserts that qualify for the 2021 tax credit?

For my situation, I am quickly finding it is more expensive to pursue the tax credit for qualifying inserts, than it is to just buy a nice insert 1-2% below the HHV threshold, where many additional manufacturers are then included. This is with even including liner costs that would apply to the tax credit.
But, I could be wrong, as the list is hard to get info out of.
 

BKVP

Minister of Fire
At the very bottom of the EPA online list (lower left) it allows to Export the database as a Excel Document.

REMEMBER THE LIST IS A LIVING DOCUMENT. IT CAN BE UPDATED AT ANYTIME. EPA IS VERY BACKLOGGED ON REVIEWING TEST REPORTS, SO NEW CERTIFICATIONS WILL BE SLOW COMING.
 

BCC_Burner

Feeling the Heat
Sep 10, 2013
363
Crystal River Valley, CO
Indeed. I'm still crossing my fingers and toes that Pacific Energy can get the Alderlea T6 up to 75% efficiency, because it would be the perfect stove for the house I'm buying (last one didn't work out...). I would love a BK, but I don't have a dealer within 130 miles.
 

BKVP

Minister of Fire
Indeed. I'm still crossing my fingers and toes that Pacific Energy can get the Alderlea T6 up to 75% efficiency, because it would be the perfect stove for the house I'm buying (last one didn't work out...). I would love a BK, but I don't have a dealer within 130 miles.
Check for pm...
 

EbS-P

Minister of Fire
Jan 19, 2019
645
SE North Carolina
For my situation, I am quickly finding it is more expensive to pursue the tax credit for qualifying inserts, than it is to just buy a nice insert 1-2% below the HHV threshold, where many additional manufacturers are then included. This is with even including liner costs that would apply to the tax credit.
I don’t think you are wrong. It will mean you could step to a more expensive stove for less money. I am working through my 2020 taxes now and wondering how the extended child tax credit is going to figure into my 2021 taxes. Wish there was a 2021 estimation tool, I should probably should look for one. For many large families these tax changes are substantial.
Evan
 

BKVP

Minister of Fire
I don’t think you are wrong. It will mean you could step to a more expensive stove for less money. I am working through my 2020 taxes now and wondering how the extended child tax credit is going to figure into my 2021 taxes. Wish there was a 2021 estimation tool, I should probably should look for one. For many large families these tax changes are substantial.
Evan
You are correct!! I was in a showroom in Wyoming last week. The dealer dollarized everything for a consumer and by purchasing a 25D Tax qualifying unit, the potential benefit was more than $2,500.00

When you compare higher quality/tech units, the savings can be substantial. Unfortunately I was also present when a dealer got chewed out by a consumer to whom he had sold a non qualifying unit. It seems the dealer did tell him it did not qualify, but said it would apply to the liner, extended hearth work for clearances and labor. The consumer called the stove manufacturer (stand up company) and they told him none of it qualified because the model he chose did not meet the requirements.

I gathered up my stuff and exited!! Post haste!!
 
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EbS-P

Minister of Fire
Jan 19, 2019
645
SE North Carolina
I don’t think you are wrong. It will mean you could step to a more expensive stove for less money. I am working through my 2020 taxes now and wondering how the extended child tax credit is going to figure into my 2021 taxes. Wish there was a 2021 estimation tool, I should probably should look for one. For many large families these tax changes are substantial.
Evan
Just finished taxes and did the maths... the temporary 2021 child tax credit will increase by 1600$ for children 5 and under on 12/31/2021 and increase by 1000$ for every child aged 6-17.
The 25D stove credit is not refundable (I believe).
Evan
 

BKVP

Minister of Fire
Just finished taxes and did the maths... the temporary 2021 child tax credit will increase by 1600$ for children 5 and under on 12/31/2021 and increase by 1000$ for every child aged 6-17.
The 25D stove credit is not refundable (I believe).
Evan
Correct, that is my understanding. However, it can be carried-over according to the IRS.
 
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