A U. S. federal tax credit on 75 percent efficient biomass heating appliances, which expired on Dec. 31, 2011, was reinstated by the "fiscal cliff" legislation - the American Taxpayer Relief Act of 2012 (H.R. 8) - signed by President Obama on Jan. 2, 2013. The bill includes a "tax extender" for Internal Revenue Service Section 25C, which provides a tax credit for, among many other things, qualifying biomass-burning stoves.  The extender provides a 10 percent tax credit of up to $300 on a qualifying biomass heating appliance purchased between Jan. 1, 2012 and Dec. 31, 2013. The credit claimable on the purchase or installation of qualifying biomass units is limited to a "lifetime limit" of $500 (and may be impacted by the purchase or installation of other products that qualify for a 25C credit).

More than 30 Quadra-Fire and Harman Home Heating products qualify for the tax credit, as well as the Northstar by Heat & Glo, and the Constitution by Heatilator (both are wood burning units). Featuring the industry’s most advanced technologies for heat efficiencies, these products are also protected by a limited lifetime warranty. There are many designs and styles to choose from that will provide ambience, warmth and comfort to your home.

After making the purchase, simply download and print the official Manufacturer’s Certificate, which indicates that the product qualifies for the tax credit. You can rely on the certificate when preparing your tax return.

Note: For tax years 2006-2011, there is a $500 cap on home efficiency tax credits claimed by a single consumer. For example, if you claimed $300 in 2007, you can claim only $200 in 2011. It is important to note, however, that a consumer who claimed a $1,500 tax credit as part of the 2009/2010 tax credit, will benefit from the full amount but is not eligible for the new $300 credit.

Tax Credit FAQs >

The following products qualify for the Tax Credit:

Quadra-Fire:
· Santa Fe Series (Pellet Stove, Pellet Insert)
· Classic Bay 1200 Series (Pellet Stove, Pellet Insert)
· Castile Series (Pellet Stove, Pellet Insert)
· Mt. Vernon AE Series (Pellet Stove, Pellet Insert)
· 2100 Millennium Wood Stove
· 3100 Millennium Wood Stove
· 4300 Millennium Wood Stove
· 3100 Step Top Wood Stove
· 4300 Step Top Wood Stove
· 5700 Step Top Wood Stove
· Yosemite Wood Stove
· Cumberland Gap Wood Stove
· Isle Royale Wood Stove
· 2700i Wood Insert
· 3100i Wood Insert
· 4100i Wood Insert
· 5100i Wood Insert
· Voyageur Wood Insert
· Voyageur Grand Wood Insert
· 7100 Wood Fireplace

Harman Home Heating:
· Accentra Series (Pellet Stove, Pellet Insert)
· XXV Pellet Stove
· Advance Pellet Stove
· P38 Pellet Stove
· P43 Pellet Stove
· P61A Pellet Stove
· P68 Pellet Stove
· PC45 Pellet Stove
· Oakwood Wood Stove
· Oakleaf Wood Stove
· TL300 Wood Stove
· P35i Pellet Insert
· 300i Wood Insert

Heatilator:
· Constitution Fireplace 

Heat & Glo:
· Northstar Fireplace