Does a Wood Stove Qualify for Energy Credit?

Does a Wood Stove Qualify for Energy Credit?

The question does a wood stove qualify for energy credit is a typical topic nowadays. But, before answering this question, there are various definitions involved. First is to understand energy credit along with its limitations and of course how can you claim it. With that being said, this article will not only answer this question. It will also explain the mechanics behind energy credit.

Defining energy credit

Energy credit is basically a form of tax credit given to those who utilize naturally obtained energy like solar energy. To explain further, if you are qualified for energy credit, a certain amount would be deducted in your annual tax. This is actually an incentive given by the government to promote preservation of the environment. This is applicable for both businessmen or investors and homeowners. But in this article, the focus would be on how energy credit for homeowners or popularly known as the energy rebate program.

Energy rebate program has been approved for the 2009 to 2010 time period. An approximate 10% rebate was given to consumers that utilize natural energy. In 2011, an extension was approved which helped numerous homeowners. But, what exactly are the qualifications to avail energy rebate program?

Products qualified of energy rebate program

To answer the question does a wood stove qualify for energy credit, one must first known what products are qualified for energy credit. As mentioned earlier, if you use naturally obtained energy, you can qualify for a tax credit. To be specific here are list of products that are qualified for energy credit.

  • Biomass stoves – these are stoves that are fueled by agricultural crops known as biomass fuel. Wood, grasses, fibers plants are some examples of crops you can use as a fuel. However, a 75% thermal efficiency rating should be measured before one qualifies.
  • HVAC – products such as air conditioning, electric heat pumps, boilers, furnaces and air circulating fan belong under this category. Each of them has their own specified qualification before you can avail tax credit.
  • Insulation – any materials installed for the purpose of insulation can qualify for tax credit. However, it must meet the IECC and amendment. In addition to that installation and labor cost are not included in the tax credit.
  • Roofing, windows, doors and sky lights – any Energy Star labeled material used in the construction of these housing parts can qualify in availing tax credit.

Wood stoves and energy credit

As you can see, wood stove fall under the biomass stove category. Thus, the answer to the question is yes, by using wood stove you can avail energy credit. But, there are other qualifications involved before one can acquire the rebate. First, this type of stove should be installed within your US residential property. Aside from that, limited time is given to avail one. Unfortunately, the time period was 2009 to 2010 which was extended until 2011. As of 2012, there are no announcements if homeowners can still avail energy credit for wood stoves. However, the government has not closed its doors regarding the energy rebate program. You may still have a chance to avail on in the future. With that being said, your question does a wood stove qualify for energy credit is explained accordingly.