What is this new tax credit?
Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code ("IRC" or "tax code") came into effect on January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
Credit Amount: Creates a new tax credit of 30 percent of the purchase and installation costs (with a $2,000 annual cap and no lifetime limit).
Qualifying Products: Require qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent efficient per the higher heating value (HHV) of the fuel.
- Further IRS guidance on qualifying products will likely be provided in 2023.
You can find more information on the IRA biomass heating tax credit, including an extensive FAQ, via the Hearth, Patio, and Barbecue Association website.
If you are looking for financing options for your new heating appliance, the following states are providing financing options:
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Maine
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Vermont
For our Canadian Customers, the following tax credits are available:
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British Columbia
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New Brunswick
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Northwest Territories
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Nova Scotia
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