http://www.pushhogg.com/energy-saving-appliances-tax-credit/
Biomass Stoves and Tax Credit FActs
1. What is the Biomass-Burning Stove Tax Credit?
This federal tax credit encourages people to make energy-conscious purchases that improve the energy efficiency of their home. It is a credit, up to $1,500, that you can get for buying a qualifying biomass-burning stove or fireplace insert between January 1, 2009 and December 31, 2010. Biomass simply means the stove uses wood or pellet fuel.
2. What is the difference between a tax deduction and a tax credit?
A deduction is an expense or amount you can subtract from your taxable income. A tax credit lowers your actual tax bill dollar-for-dollar, in this case by up to $1,500. In general, a tax credit is more valuable than a similar tax deduction.
3. How is the value of this tax credit determined?
When you buy a qualifying biomass-burning appliance between January 1, 2009 and December 31, 2010, you get a tax credit of 30% of the total price, up to $1,500 dollars. So, for example, if your wood or pellet stove cost $5,000 (which can include installation), you can deduct $1,500 from the taxes you owe the government.
4. What appliances qualify for the tax credit?
Any wood- or pellet-burning stove that meets the 75% efficiency rating qualifies for this credit. Manufacturers test their products to certify they meet this efficiency standard and the IRS-required certification will come with the product straight from the appliance manufacturer. Visit the experts at Matchless Stove & Chimney, who can explain which products qualify for the tax credit.
5. Are biomass stoves installed in new or vacation homes covered by this tax credit?
No. The credit only applies to your existing principal residence. New homes and vacation homes don’t qualify, nor do homes owned as rental units.
6. How do I ensure that I can collect on my tax credit?
Save your receipt that proves you purchased the qualifying appliance between January 1, 2009 and December 31, 2010. You’ll also need a manufacturer’s certification statement that states your product meets the 75% efficiency rating needed to qualify for this tax credit.Matchless will give you the manufacturer’s certification statement that includes
- The name and address of the manufacturer.
- Identification of the class of qualified energy property (e.g., biomass-burning stove).
- The make, model number and any other appropriate identifiers of the stove.
- A statement that the product is an eligible qualified energy property.
- A signature of a person able to bind the manufacturer to the above standards.
These documents don’t need to be attached to your tax return, but you should keep them for your records.
7. Are installation costs included in this tax credit?
Yes. Installation costs are included as long as professional installation is required for the proper and safe operation of the stove. Matchless Stove & Chimney provides the expertise, personal service and product selection homeowners need to make the right decision.
About the Author
Matchless Stove and Chimney with locations in Glenmont, NY and Clifton Park, NY sells and service fireplaces Albany Fireplace,Clifton Park Fireplace, Saratoga Fireplace, Albany Gas Inserts repair, and all related fireplace accessories
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One Comment
The energy efcncieify tax credit is technically non-refundable which means at the end of the year, you can’t get back more in credits than you paid to the government in taxes throughout the year.The home improvement energy tax credit is a nonrefundable income tax credit so if you do not have any federal income tax liability on your 1040 tax form page 2 line 44 you would not get any of the credit amount back as a refund.If you have a federal income liability on the Line 44 the nonrefundable credit amount that you qualify for would be used to reduce your income tax liability amount.If the federal income tax liability amount is less than your qualified home improvement project is less than your qualified energy credit amount it would reduce your tax liability amount to -0- on the page 2 Line 55.