Changeouts & Stove Tax Credits

Tax Credits:

HPBA Tax credit updates page: click here

HPBA CURRENT (2024) Tax credit website page: click here 

30% Biomass Stove Tax Credit - Enacted for appliances installed between Jan 1, 2023 to Dec 1, 2032! There will be changes to the tax credit starting on January 1, 2025! Those changes are reflected below.

With the August 16, 2022, signing of the Inflation Reduction Act (IRA), high-efficiency biomass heating products once again qualify for a tax credit under Section 25(C) of the Internal Revenue Code (“IRC” or “tax code”). This new 30 percent tax credit – capped at $2,000 annually – is available for appliances installed between January 1, 2023, and December 31, 2032. The credit can be used on the purchase and installation costs of qualifying appliances. To be eligible for the tax credit, an appliance must have a thermal efficiency of at least 75 percent per higher heating value (HHV) of the fuel. 

• Beginning in 2025 every appliance will have to be on the EPA list as 75% efficient
• Beginning in 2026 taxpayers will all need a Qualifying Manufacturer (QM) number to file.

Feel free to contact John Crouch (Crouch@hpba.org) with any questions that are not answered by our website.

What is this new tax credit?

• Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is effect on January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
• Credit Amount: Creates a new tax credit of 30 percent of the purchase and installation costs (with a $2,000 annual cap with no lifetime limit) for tax years 2023 through 2032.
• Qualifying Products: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel. Beginning in 2025 every appliance will have to be on the EPA list as 75% efficient.
  • The EPA certified wood heater database should be referenced (all products must be on the EPA list to qualify). Look for products with efficiencies of at least 75 percent.
  • A manufacturer certification statement attesting that a product qualifies can also be relied upon. In 2026 - 2032 every individual appliance that qualifies will have its own Product Identification Number (PIN). It will be provided by the manufacturer. It will not be permanently applied to the appliance, but it will be attached.

See our new FAQs about this new tax credit for additional information.

• Qualifying Products: Require qualifying products (any biomass-fueled heater) be at least 75 percent efficient per the higher heating value (HHV) of the fuel

  • The EPA certified wood heater database should be referenced

  • IRS Guidance

  • Retailer One-Pager

See our new FAQs about this new tax credit for additional information. 

HPBA Tax credit page: click here

Changeouts by State:

North Dakota:

South Dakota:

Nebraska:

IOWA:

Minnesota:

Wisconsin:

UP of Michigan: