Tax Credits for Installing Biomass Stoves

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Published: January 23, 2012
By: Gil Rudawsky
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If you warmed your chestnuts cost-effectively by installing a biomass stove in 2011, you may be eligible for a tax credit.

Effort: Low 1 day (research)
Saves: Med $64-$255/yr (heating bills)
Investment: Med $3,000-$4,500 (stove)

Did you install an efficient biomass stove last year? If so, your foresight makes you eligible for a $300 energy tax credit. Here’s what you need to know:

The credit is limited to 10% of expenditures, up to $500 for the year, for all energy improvements combined, although the stoves themselves have a $300 limit.

File IRS Form 5695 in 2012.

You have to have installed the stove by Dec. 31, 2011.

Save receipts and labels.

Installation costs are covered.

The official Energy Star site has posted new guidelines on what exactly is covered. It’s your safest bet for information on how to get the credit. Don’t rely solely on contractors who may not know the details or who promise their products will get the credit in order to make a sale.

As of January 2012, the feds haven’t extended the energy tax credit for biomass stoves beyond 2011.

Next: Just what are biomass stoves?

Gil Rudawsky

Gil Rudawsky has covered business and consumer issues for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home’s character in mind when making upgrades.

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