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.
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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. |
