Tax credit for wood heating purchases

The 2009 economic stimulus legislation includes a tax credit for biomass heating appliances. Homeowners who purchase a 75 percent efficient biomass wood or pellet stove, fireplace or fireplace insert can receive a 30-percent tax credit for costs incurred, up to $1,500. The unit must be fully installed by Dec. 31 to receive the credit for 2009, but the program is in place in 2010 as well.

“This is the woodstove equivalent of the ‘cash for clunkers’ program.  In this case, the customer receives a generous income tax credit for the purchase of a clean-burning heating appliance that utilizes a renewable heating fuel,” says John Frankel, OHPBA president.

Qualifying products include many EPA-certified freestanding wood or pellet stoves, inserts, and fireplaces. Contact your local hearth appliance dealer to determine which brands and models qualify for the federal tax credit.

The Oregon Residential Energy Tax Credit program offers up to a $300 tax credit for installation of qualifying wood or pellet stoves.  Also, Oregonians who heat with wood and pellet stoves can claim a fuel tax credit worth $10 per cord or per ton of pellets. These credits can be added to the federal credit.

Experts say burning wood and pellets for heat is considered carbon-neutral since only the carbon the tree or plant absorbed when growing is released into the air. High efficiency biomass heaters are up to ten times cleaner burning than uncertified stoves and they use far less wood. For more information on the federal biomass tax credit:

Oregon Tax Credit:  A list of stove dealers in Oregon:

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