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Woodstove/Pellet Stove Federal Consumer Tax Credit Information
Now is a great time to purchase a new Woodstove or Pellet Stove!!! In recognizing consumer's needs to cut their heating costs the US Government passed and President Obama signed into law on February 17, 2009 the the American Recovery and Reinvestment Act (ARRA). Among the provisions of this act is a federal tax credit to consumers who purchase, install and use efficient biomass-burning appliances. Consumers claim the credit on their federal income tax form at the end of the year. This new credit reduces the amount of tax you owe. The new credit is a reduction of total income tax at the bottom of your return, up to $1500. This tax credit is a non-refundable tax credit available for individuals who pay taxes and who make energy-conscious purchases to improve the energy efficiency of their home. Note: With regard to tax credits vs. tax deductions, in general, 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.

General Information

1. The tax credit is a 30% tax credit of up to $1500 total (lifetime cap) over a two year period (2009-2010) for the purchase and installation of a 75% efficient biomass-burning appliance.
2. To be considered for this tax credit a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75% as measured using a lower heating value. Biomass fuels are derived from renewable and sustainable sources such as wood, pellets, corn, and switch grass that are alternatives to fossil fuels. Some biomass fuels are even considered carbon neutral, or better, utilizing waste products from other industries such as cherry pits and sawdust.
3. This tax credit may be applied to the cost of the stove and accessories. Installation costs may also be covered under the energy tax credit including chimney pipe and hearth materials, as long as it is a requirement for the stove's proper and safe functioning.
4. This tax credit applies for improvements "placed in service" from January 1, 2009, through December 31, 2010.
5. The tax credit applies only to existing principal residences, new homes and vacation homes will not qualify, nor will homes owned as rental units.

Qualifying Woodstoves & Pellet Stoves

The table below lists which of our Woodstoves and Pellet Stoves qualifies for this tax credit.
Woodstoves
Napoleon

Napoleon 1100CP Cast Iron Wood Burning Stove
Napoleon 1400PL Steel Wood Burning Stove
Flame
Flame XTD 1.1 Wood Burning Stoves
Flame XTD 1.5 Wood Burning Stoves
Flame XTD 1.9 Wood Burning Stoves
Flame NXT-1 Steel Wood Burning Stove
Timer Ridge
Timber Ridge 50-TNC13 Wood Stove
Timber Ridge 50-TNC30 Wood Stove
Pellet Stoves
Flame

Flame FP-45 Pellet Stove
Timber Ridge
Timber Ridge 55-TRP10 Pellet Stove
Timber Ridge 55-TRP22 Pellet Stove

Flame EPA Manufacturers Certificate
Napoleon EPA Manufacturers Certificate
Timber Ridge EPA Manufacturers Certificate

How to claim the Consumer Tax Credit

We recommend you consult with your Tax Advisor as each individual's tax situation will be different. However here are some general guidelines:
1. Keep any receipts for the purchase of the stove, accessories or installation. Also keep a copy of the manufacturers EPA certificate.
2. When you file your 2009 or 2010 taxes present the receipts and manufacturers certificate to your tax provider.
3. You will need to file IRS Form 5695 with your taxes. (This form may change, your tax advisor should have the latest version)

For your convience we have available the latest IRS Guidance for this Tax Credit.