pasted from New Englands Website - SWEET
02/18/2009
To our Retailers:
We have some outstanding news to share with our retailers and consumers. The Stimulus Bill (American Recovery and Reinvestment Act) signed by President Obama yesterday includes a major new tax credit for high efficiency (>75%) biomass heating appliances. Effective in 2009 and 2010, consumers will be able to take a tax credit equal to 30% of the installed cost of a pellet heating appliance up to a total of $1,500.
The tax credit provisions are extended improvements of legislation that passed in October 2008. The major changes are an extension of the credit to 2010 and the increase on the credit from $300 to 30% of the total cost. Former NH Senator John Sununu and NH Congressman Paul Hodes led the effort last year to secure the original credit. New England Wood Pellet’s advocacy efforts were important to this initiative.
While the new tax credit takes effect immediately, the Internal Revenue Service (IRS) has not issued the guidelines for determining what appliances meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products. These guidelines are expected by March 31, 2009; however the credit applies to all qualifying appliances sold in 2009. Once the IRS guidelines are issued, wood and pellet stove (and boiler) manufacturers will test their appliances and will notify their retailers about their models that qualify.
So while there is some uncertainty about how the credit will apply, this represents a major victory and should greatly aid in spurring new appliance sales during the down economy. We encourage our retailers who also sell pellet appliances to contact their manufacturer rep for more information on which appliances qualify and what to tell customers.
Charlie Niebling
General Manager
New England Wood Pellet
02/18/2009
To our Retailers:
We have some outstanding news to share with our retailers and consumers. The Stimulus Bill (American Recovery and Reinvestment Act) signed by President Obama yesterday includes a major new tax credit for high efficiency (>75%) biomass heating appliances. Effective in 2009 and 2010, consumers will be able to take a tax credit equal to 30% of the installed cost of a pellet heating appliance up to a total of $1,500.
The tax credit provisions are extended improvements of legislation that passed in October 2008. The major changes are an extension of the credit to 2010 and the increase on the credit from $300 to 30% of the total cost. Former NH Senator John Sununu and NH Congressman Paul Hodes led the effort last year to secure the original credit. New England Wood Pellet’s advocacy efforts were important to this initiative.
While the new tax credit takes effect immediately, the Internal Revenue Service (IRS) has not issued the guidelines for determining what appliances meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products. These guidelines are expected by March 31, 2009; however the credit applies to all qualifying appliances sold in 2009. Once the IRS guidelines are issued, wood and pellet stove (and boiler) manufacturers will test their appliances and will notify their retailers about their models that qualify.
So while there is some uncertainty about how the credit will apply, this represents a major victory and should greatly aid in spurring new appliance sales during the down economy. We encourage our retailers who also sell pellet appliances to contact their manufacturer rep for more information on which appliances qualify and what to tell customers.
Charlie Niebling
General Manager
New England Wood Pellet
