tax credit update: industry has turned a corner

[John Ackerly]

As far as we can tell, in 2021, consumers are finally getting pretty accurate info from manufacturers about efficiencies and which models qualify for the tax credit. Interested to know if others have noticed that. We only found one stove company that continues to claim stoves way down in the mid-60 efficiencies, are eligible for the tax credit. We had a good exchange with that company but they did not want us to quote them on their side of the story - (which we did not really understand or find credible). Should be a good year for stove sales - at least for brands that can keep up with demand and minimize supply chain issues. Also interested in whether you all feel the tax credit is that important and drives consumers toward higher efficiency stoves.

Consumers can now rely on almost all stove tax credit certificates issued by manufacturers

Wood stove, pellet stove, NSPS, EPA, PM, grams per hour, efficiency, LHV, HHV, cleanest, best, carbon neutral, biomass, tax credit, IRS, certified

forgreenheat.blogspot.com

 

[armanidog]

A tax credit definitely is a big factor.
Is the price for natural gas this year expected to go higher or lower? I believe that is one of the main factors for sales of alternative heat appliances.

 

[begreen]

There is also a move afoot to allow people to collect a refund if they don't need all of the tax credit.

 

[qwee]

You can find your wood stove here,
https://cfpub.epa.gov/oarweb/woodstove/index.cfm?fuseaction=app.searchResults

 

[EbS-P]

There is also a move afoot to allow people to collect a refund if they don't need all of the tax credit.

That would be something good. With the extended child tax credit now finalized for next year it will probably be affecting many.

 

[EbS-P]

As far as we can tell, in 2021, consumers are finally getting pretty accurate info from manufacturers about efficiencies and which models qualify for the tax credit. Interested to know if others have noticed that. We only found one stove company that continues to claim stoves way down in the mid-60 efficiencies, are eligible for the tax credit. We had a good exchange with that company but they did not want us to quote them on their side of the story - (which we did not really understand or find credible). Should be a good year for stove sales - at least for brands that can keep up with demand and minimize supply chain issues. Also interested in whether you all feel the tax credit is that important and drives consumers toward higher efficiency stoves.

Consumers can now rely on almost all stove tax credit certificates issued by manufacturers

Wood stove, pellet stove, NSPS, EPA, PM, grams per hour, efficiency, LHV, HHV, cleanest, best, carbon neutral, biomass, tax credit, IRS, certified

forgreenheat.blogspot.com

It’s a factor for those who can afford it. It’s still cheaper to get the cheapest appliance that does not qualify and DIY than it would be to get a qualifying model. I am speaking generally. Once you get to a mid tier appliance it definitely is an incentive. I’d like to see the numbers of non EPA appliance being replaced by HHV>75 versus those being replaced by regular 2020 certified VS the number of non EPA appliances still being used for significant heating. Non EPA change outs are where there is real potential for large improvements.

 

[EatenByLimestone]

If I were in the market for a stove, the credit would not get me to choose a stove I found less desirable over one I liked better without the credit.

 

[John Ackerly]

It’s a factor for those who can afford it. It’s still cheaper to get the cheapest appliance that does not qualify and DIY than it would be to get a qualifying model. I am speaking generally. Once you get to a mid tier appliance it definitely is an incentive. I’d like to see the numbers of non EPA appliance being replaced by HHV>75 versus those being replaced by regular 2020 certified VS the number of non EPA appliances still being used for significant heating. Non EPA change outs are where there is real potential for large improvements.

With federal tax credits, there has never been any change out requirement or any professional install requirement. I hope this higher tax credit will encourage more folks to get stoves professionally installed as it makes that 26% cheaper too. Many cheap pellet stoves qualify for the credit but not cheap non-cats. Big problem is that unless its reimbursible - which it won't be - it rarely benefits low-income families. So yeah, then the incentives to get higher efficiency stoves - and pro install - don't exist for them.

 

[blamus]

What is considered a Pro install? And if I have my general handy man do it, and he bills me as per usual by the hour for this stove install, can I use that to claim 26%? And whatever pipe/chimney supplies I order along with the stove can also get the 26%? how does the actual process work?

 

[EatenByLimestone]

I think I'd ask the IRS how they interpret their regulation.

 

[stoveliker]

I don't believe the IRS is concerned about the level of "pro-ness" for this. They can't check that. Too much work.

Have a bill for install, use it for the credit.

Quality is the realm of code enforcement, not the IRS.

 

[WesM]

I don't believe the IRS is concerned about the level of "pro-ness" for this. They can't check that. Too much work.

Have a bill for install, use it for the credit.

Quality is the realm of code enforcement, not the IRS.

Can I bill for my time installing the stove? 🤪

Also the link seems to be dead for checking the certification qualifiers.
https://cfpub.epa.gov/oarweb/woodstove/index.cfm?fuseaction=app.searchResults

 

[stoveliker]

I would not advise that. But then I'm not the tax man, or a specialist.

 

[WesM]

I would not advise that. But then I'm not the tax man, or a specialist.

I was joking, not worth the potential for trouble.

 

[snobuilder]

Besides the stove itself can I submit the cost of install necessities like pipe, liners, dampers etc.

 

[stoveliker]

Yes, if associated with the install of a stove meeting the efficiency requirement.

 

[stoveliker]

Though the damper provides an interesting conundrum, given the ambiguous legality of dampers. That discussion was held in another thread started by bkvp.

 

[John Ackerly]

What is considered a Pro install? And if I have my general handy man do it, and he bills me as per usual by the hour for this stove install, can I use that to claim 26%? And whatever pipe/chimney supplies I order along with the stove can also get the 26%? how does the actual process work?

HPBA has a good page with more detailed info. But as far as I know, a bill from a handyman is fine, and either you or he can supply the pipe and chimney supplies. Just keep receipts for everything. Hard to get IRS to provide any more detail that what is on their page.

 

[John Ackerly]

Can I bill for my time installing the stove? 🤪

Also the link seems to be dead for checking the certification qualifiers.
https://cfpub.epa.gov/oarweb/woodstove/index.cfm?fuseaction=app.searchResults

Maybe if you are a certified installer and work for a company, and the bill comes from the company. But generally, no you can't pay your self!