Included in the 2009 Economic Stimulus legislation signed into law by President Barrack Obama on February 17th, 2009, is a 30% (up to $1,500) consumer tax credit in 2009 and 2010 for the purchase of a 75% efficient biomass-burning stove as measured using a lower heating value. The Hearth, Patio & Barbecue Association and the Pellet Fuels Institute, succeeded in their efforts improving the tax credit to promote renewable energy and help consumers fight rising year to year home heating costs.
The pellet stove biomass tax credit provisions in this new legislation contain improvement amendments to the legislation passed back in October 2008. The major changes made were an extension of the credit to 2010 and an increase of the credit from $300 to 30% of the total cost of stove.
Guidelines for determining what pellet stoves meet the efficiency requirements to qualify for the credit are determined by the U.S. Department of the Treasury and the IRS. The pellet and biomass tax credit took effect January 1st, 2009. These guidelines were released on March 31, 2009, and the credit applies to all qualifying pellet stoves sold in 2009 and 2010. Make sure you contact us soon as this tax credit will only be in effect for a couple more months. So be sure to check out our selection of pellet stoves and take the government up on this terrific offer! Below we have added in a couple important questions that were asked about this tax credit.
Q: What is a federal consumer tax credit?
A: Consumers claim the credit on their federal income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay.
Q: When does this pellet / biomass tax credit go into effect and how long will it last?
A: The pellet tax credit goes into effect January 1st, 2009 and is valid only for the purchase of a qualifying stoves in 2009 and 2010. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010.
Q: How does the language in this legislation differ from what was passed in October 2008?
A: The new legislation 1) increases the pellet - biomass tax credit from $300 to 30% of the total cost of a biomass-pellet burning stove, 2) extends the tax credit to purchases in 2010, and 3) measures the pellet-biomass stove’s efficiency based on the lower heating value.