Wood Heaters Tax Credit

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).

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.

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