A spending legislation and pandemic relief package was signed into law in December 2020.  It includes a tax credit for wood and pellet heaters. These systems, whether purchased to heat space or larger, whole home heating systems, will now qualify for a Renewable Energy Investment Tax Credit (Section 25(D) of the Internal Revenue Code).

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Beginning in 2021 and continuing through 2022, consumers purchasing highly efficient wood or pellet stoves, or larger residential biomass heating systems will be able to claim a 26% tax credit that is uncapped and based on the full cost - purchase and installation - of the unit. The credit will decrease to 22 percent in 2023.

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If you have any questions regarding the Renewable Energy Investment Tax Credit, please contact Warmstone Fireplaces and Designs at (406) 333-4383.