Q: Are all wood stoves eligible for this 30%
A: No. The 2009 Stimulus Plan (the “American
Recovery and Reinvestment Act of 2009”)
specifies that only wood stoves that are 75%
efficient will qualify.
Q: How will the 75% efficiency requirement
A: The 75% efficiency requirement is measured
using the “lower heating value” of the wood.
Lower Heat Value (LHV, or net calorific value)
of wood does not include the energy required to
vaporize water. In Lower Heat Value, the energy
lost in vaporizing water is subtracted from the
calculation of efficiency, because this energy is
not intended to be recovered by the stove.
Q: Do your wood stoves qualify?
A: Yes. On June 2, 2009 the IRS finalized the
requirements for “qualified energy property.”
Back in April, we sent our stoves to an
independent test lab for efficiency testing under
the Lower Heat Value method. All of our
woodstoves passed with flying colors (efficiency
results varied between 85-90%, depending on the
model). The official certificate is available on our
Q: When does this tax credit go into effect
and how long will it last?
A: The tax credit is good for two years. It goes
into effect January 1, 2009 and is valid only for
the purchase of a qualifying stove in 2009 and
2010. The sales receipt must indicate that the
purchase was made between January 1, 2009
and December 31, 2010.
Q: How will I use this tax credit?
A: You can claim this credit on your federal
income tax form at the end of the year. The credit
decreases your tax liability. (It does this by
increasing your tax refund or, if you owe taxes, it
decreases the amount you have to pay.
Note: This is a tax credit, not a tax deduction. A
tax credit is more valuable than a similar tax
deduction. A tax credit reduces the tax you pay,
dollar-for-dollar. Tax deductions - such as those
for home mortgages and charitable giving -
lower your taxable income.
Q: Is it a max of $1500 per household per
year? Or is $1500 the max over the 2 years?
A: $1,500.00 is the maximum over two years,
Q: Can I buy more than one woodstove and
still get the credit?
A: Yes, you could buy two qualifying wood
stoves and get a 30% tax credit on each stove (up
to a maximum credit of $1,500.00)
Q: Can I get a tax credit for related items (i.e.
chimney parts, installation materials, hearth
pads, and so on) to get the maximum credit?
A: No, the tax credit only applies to the purchase
price of the stove itself and installation (labor)
costs, and not related equipment
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