Tax credit for wood pellet stoves....did this really happen? It's tax time.......

  • Thread starter Thread starter imacman
  • Start date Start date
  • Active since 1995, Hearth.com 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.
  • Hope everyone has a wonderful and warm Thanksgiving!
  • Super Cedar firestarters 30% discount Use code Hearth2024 Click here
Status
Not open for further replies.
I

imacman

Guest
Just started setting up my tax return, and started looking for something that gave us a tax credit. I did a search, and it was discussed a lot at the end of last year on here, but there seemed to be some confusion on what really got passed, and who's eligible.

Anyone started their taxes and found any info on this? Thanks!
 
It did get passed, but only for installs that happen this year. Sucks....

(broken link removed to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits)
 
Thanks.....I think I just imagined that I installed my stove last year :-/ . I'm pretty sure I installed it this month..... ;-)
 
The credit CLEARLY states for BIOMASS Stoves but have no fear pellet stoves folks..
The government in their infinite wisdom also states what a BIOMASS STOVE MUST USE AS FUEL and I quote

"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"

But whereas in the pellet stove industry we have come to know BIOMASS to mean anything other than just wood pellets such as Corn or Cherry Pits etc....
thank goodness the government likes to generalize

Now from what I read it didn't say that the stove had to be brand new OR installed by professionals..it just had to be in operation between Jan1-31 of 2009..but we'll see what the tax form 5695 says when it comes out later this year
As for me MACMAN, I'm also pretty sure my stove was installed this year by you also..hehe
 
Ha!

Down payment on the pellet stove August 18th., 2008.

Had to wait until January 13th., 2009 for the install. ( A wait of five months minus five days.) ( Sometimes something bad has some good attached.)

Looks like I qualify!!

Thanks for the information.
 
My tax preparer made it happen for me when I installed in '08. Something about a home heating system efficiency upgrade.
 
I am not sure if this will help or add to confursion, but in another thread, https://www.hearth.com/talk/threads/31255/ It seems that on the forth posting down, there are two web sites to pull in that explain some of the confusion. seems there are two bills, an original one, that covered 2008 and after 2009. then a sencond bill that caught the oversight and addressed 2009. 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

this is what I think covers 2008:
would be good if someone who is successfull in claiming this to advise how to go about it. thanks
 
I wonder if the average price of stoves will increase by about $300.
 
sinnian said:
It is quite clear (broken link removed to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c5) that it is for biomass stoves "placed into service" between January 1, 2009 through December 31, 2009. 2008 is indeed left out.

Well, as far as I'm concerned, I've been "testing" the stove since October, and now that I'm sure everything is working OK, I placed it into service on Jan. 2, 2009.

I have not stopped using my previous heating system, so I think the IRS would have a VERY hard time proving when you actually "placed it in service". Just because I bought it in '08 (or installed it for that matter), doesn't mean I started using it right away.

Remember everyone, the IRS rules are open to interpretation by the taxpayer....."placed into service" can be interpreted different ways.
 
I don't understand why they decided to issue a credit/tax incentive (whatever) only for installs during a single year. What about the folks who have been helping mother earth for years? And what about those who have purchased at the end of 2008. What about those who purchase in january of 2010? Why ony those folks in 2009?

Sounds purposeless to me. Are you telling me that they only want to encourage people to go green during 2009, after that its business as usual for global warming?

I am just pissed because I missed out, but I don't understand what makes 2009 so special. Channel 999's weekly rant by codebummer.
 
The intent, I believe, is to increase usage of biomass stoves. Or maybe, make a donor happy by selling more stoves. Anyway, if you already invested, throwing money at you won't help that goal.
 
Ahhh yes, I am all for the increase of biomass fuels. Just not sure why only one year.

Anyway, if you already invested, throwing money at you won’t help that goal.

Well, your right there. I am glad to already be helping the environment. I hope more folks do. If more people buy biomass stoves/furnaces in 2009, then yes thats a good thing. But keep the incentive going for several years. I am not sure that anyone is making their purchase due to the $300 though. Yes it is nice (hecht, people can throw money my way anytime), and I hope it works.
 
I agree, these incentives should be long term as in 10+ years. Take .00000001% from the top 3% to fund it, they will not miss it. Anyway, I hope it helps the industry.
 
macman said:
sinnian said:
It is quite clear (broken link removed to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c5) that it is for biomass stoves "placed into service" between January 1, 2009 through December 31, 2009. 2008 is indeed left out.

Well, as far as I'm concerned, I've been "testing" the stove since October, and now that I'm sure everything is working OK, I placed it into service on Jan. 2, 2009.

I have not stopped using my previous heating system, so I think the IRS would have a VERY hard time proving when you actually "placed it in service". Just because I bought it in '08 (or installed it for that matter), doesn't mean I started using it right away.

Remember everyone, the IRS rules are open to interpretation by the taxpayer....."placed into service" can be interpreted different ways.

I'm with you Macman. My stove has been running for a while, but it never knew it had been "placed in service". I just walked into the kitchen and told it -- "Pellet stove, I formally place thee in service on this day 1/18/2009". :coolsmirk:
<I kid...I kid...>
 
You'll need to get a Manufacturer's Certification for your records. Should you be audited, you'll need it.

"A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return."

"Placed into service" means ready and available for use. Installing in December, but saying you only fired it in January doesn't fly... it was placed in service in December.

Up to you whether you "fudge" your returns or not, but being married to a CPA.... I am colored by a viewpoint that seeks to avoid getting nailed by the IRS. Just remember, in an audit and in tax court, the IRS doesn't have to prove you did anything wrong... it is up to you to prove you are right. If you try and push an installed pellet stove into the next year and are called for it... how are you going to prove that it was only "placed into service" in 2009. The person who takes the credit legitimately has a 2009 dated delivery receipt to cover his but.
 
Macman is the one that stands to lose. If we can't get a $300 credit...how can we pay our "Pellet Pig Initiation Fee". :lol:
 
As far as getting a "Manufacturer's Certification", I don't see where that would be a big deal.

As far as "The person who takes the credit legitimately has a 2009 dated delivery receipt to cover his but.", you're trying to say that because I have a delivery slip that's in 2008, that I HAD to install it in 2008 too?

Since I was the installer, I don't see where the IRS can say anything.
 
I don't know how it will fly, but I think I might include my Harman on my taxes as well.
 
I gotta correct the dates on my above post; it should read that the stove was installed the week of Thanksgiving, 2007......the taxes for 2007 were prepared in 2008.....don't remember wheither it was a State or Federal credit.
 
According to (broken link removed to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c5) you have to use a form that won't be available until late 2009 or early 2010 so this can't be claimed on taxes this year unless I am reading it wrong.

Copied from the website I reference above.
Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
 
The PFI has a short FAQ on the matter:


(broken link removed to http://www.pelletheat.org/3/residential/taxCredit.html)

[EDIT] - At the bottom of the page that I linked to above, they have a link to the Text of the Tax credit legislation.


(broken link removed to http://www.pelletheat.org/3/residential/HR_1424__SEC_302_FINAL.pdf)

So, is it only 2009 or not?
 
Status
Not open for further replies.