The
recently signed economic stimulus legislation contains a
30% Tax Credit for high efficiency wood stoves.
This effectively
adds an average of $650.00 to your savings! This is one of
the best deals on our woodstoves in the last 20 years...
compliments of the federal government!
So for this sale, you get a great price on
wood stoves and shipping, plus a huge boost from the tax
credit.
The tax credit is a dollar-for-dollar credit
on your 2009 income taxes. If you pay taxes, you’ll pay approximately $650.00 less
(see amounts above). If you normally get a refund, you’ll
get approximately $650.00 more.
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By the way, you may be wondering how Woodstock Soapstone
Company is doing during this recession. The answer is just
fine. We have had no layoffs (and none planned). All of our
stove builders and customer service people are fully employed
building stoves and helping our customers!
To get details on the tax credit, click here. If you have
any questions, please call us toll free during normal business
hours at 1-800-866-4344.
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Q: Are all wood stoves
eligible for this 30% tax credit?
A: No. The 2009 Stimulus Plan (the “American
Recovery and Reinvestment Act of 2009”) specifies
that only wood stoves that are 75% efficient will
qualify.
Q: How will the 75% efficiency requirement be
determined?
A: The 75% efficiency requirement is
measured using the “lower heating value” of
the wood. Lower Heat Value (LHV, or net calorific value)
of wood does not include the energy required to vaporize
water. In Lower Heat Value, the energy lost in vaporizing
water is subtracted from the calculation of efficiency,
because this energy is not intended to be recovered by
the stove.
Q: Do your wood stoves qualify?
A: Yes. On June 2, 2009 the IRS finalized
the requirements for “qualified energy property.” Back
in April, we sent our stoves to an independent test lab
for efficiency testing under the Lower Heat Value method.
All of our woodstoves passed with flying colors (efficiency
results varied between 85-90%, depending on the model).
The official certificate is available on our website.
Q: When does this tax credit go into effect and
how long will it last?
A: The tax credit is good for two
years. It goes into effect January 1, 2009 and is
valid only for the purchase of a qualifying stove
in 2009 and 2010. The sales receipt must indicate
that the purchase was made between January 1, 2009
and December 31, 2010.
Q: How will I use this tax credit?
A: You can claim this credit on your
federal income tax form at the end of the year. The credit
decreases your tax liability. (It does this by increasing
your tax refund or, if you owe taxes, it decreases the
amount you have to pay.
Note: This is a tax credit, not a tax deduction. A tax
credit is more valuable than a similar tax deduction. A
tax credit reduces the tax you pay, dollar-for-dollar.
Tax deductions - such as those for home mortgages and charitable
giving - lower your taxable income.
Q: What documentation will I need?
A: We will provide you with a signed
certification that the wood stove that you purchase from
us qualifies for the tax credit. We will post copies
of these certifications on our website to make it easier
for you. You must keep a copy of the certification statement
and the sales receipt for your records, but do not have
to submit them with your tax return.
Q: Is the tax credit good just for wood stoves?
A: No, the 30% also applies to qualifying
windows, storm windows, exterior doors, insulation, and
certain types of furnaces and water heaters.
Note: The 30% amount is subject to a maximum of $1,500
per homeowner for all improvements combined. |
Q. I am building my
own home. Can I get the $1500 tax credit as part of my
new home construction?
A: No, the $1,500 tax credit is
designed only for existing homes, and includes energy
saving windows and doors, insulation, high efficiency
water heaters and furnaces, and biomass stoves. However,
if you are building a new home, there are other tax
credits available for building energy efficient homes.
Plus, there are new home tax credits available for
photovoltaics, solar water heaters, small wind systems
and fuel cells.
Q: Is it a max of $1500 per household per year?
Or is $1500 the max over the 2 years?
A: $1,500.00 is the maximum over two
years, per household.
Q: Where can I find information on receiving the
tax credit for other energy efficiency purchases (insulation,
windows, etc.)?
A: To determine whether other products
qualify, check with either the manufacturer or the
distributor/store. This piece of legislation was
large, complex, and passed in a hurry, so it may
take some time until everything gets settled. Even
in our case, the bill was passed before the method
for testing wood stove efficiencies was determined!!
Q: Can I buy more than one woodstove and still get
the credit?
A: Yes, you could buy two qualifying
wood stoves and get a 30% tax credit on each stove
(up to a maximum credit of $1,500.00)
Q: Your literature lists all of your woodstoves
at 72% EPA Efficiency. What makes you so sure that your
stoves will qualify for the 75% minimum?
A: The EPA Efficiency is a “default” efficiency...
in other words, every EPA Approved Catalytic Woodstove
is presumed to be at least 72% efficient. Under the
Lower Heat Value efficiency testing standards proposed
by the federal government for this tax credit, all
of our stoves exceeded the 75% minimum efficiency
required to qualify for a tax credit.
Q: I bought one of your stoves in 2008. Can I qualify
for the tax credit?
A: Unfortunately, no. The credit
only extends to qualifying stoves placed in service
between January 1, 2009 and December 31st, 2010.
Q: Can I get the tax credit if I buy one of your
gas stoves?
A: No, the credit only applies to “biomass” stoves
and, unfortunately, not to our gas stoves.
Q: Can I get a tax credit for
related items (i.e. chimney parts, installation materials,
hearth pads, and so on) to get the maximum credit?
A: No, the tax credit only applies
to the purchase price of the stove itself and installation
(labor) costs, and not related equipment. |
