Purchasing a wood or pellet stove is an investment that not only can save you money on gas and oil bills but can also help lower your carbon footprint. And now, BioMass Tax Credits are available for 2015 and 2016 wood and pellet stove purchases! On December 16, 2015, the long-awaited year-end tax deal that was negotiated between the House and Senate leadership was unveiled. Included in this section is the $300 credit for residential biomass stoves. The bill reauthorizes the tax credit RETROACTIVELY to January 1, 2015 and extended through December 31, 2016.
The credit applies to purchases made in 2015 and 2016. Consumers who made residential biomass heating purchases need to retain for their records a manufacturer’s certificate that demonstrates the unit qualifies for Sec. 25C and a receipt (proof of purchase). Manufacturer’s Certificates are available on each manufacturer’s web site.
How to Claim this Tax Credit
The credit can be claimed on IRS Form 5695. The biomass tax credit could be claimed on line 22a of the 2015 form (Residential energy property costs — Energy-efficient building property). More detailed instructions regarding completion of this section can be found on the last page of IRS Form 5695 at the bottom of the first column. The HPBA recommends all individuals consult with their tax adviser for details on the applicability of the tax credit.
