January 2, 2013
FEDERAL TAX CREDIT FOR WOOD STOVE REINSTATED AND RETROACTIVE
Congress passed a bill addressing parts of the Fiscal Cliff, and it included a reinstatement of the $300 tax credit for biomass heaters that are 75% efficient using lower heating value. Another provision of the bill extended the wind production tax credit for one more year.
In addition to the purchase price, consumers can include the cost of professional installation which is important to the proper and safe operation of biomass stoves.
The biomass stove provision provides for a 10% tax credit up to $300 for stoves bought in 2013 and it is retroactive, so that all eligible stoves purchased in 2012 can also get the credit. This credit was allowed to expire at the end of 2011 and H.R. 8 extends it through December 31, 2013.
The bill language that makes it retroactive did so by just extending the credit that existed in 2011, through December 31, 2013:
SEC. 401. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT EXISTING HOMES. (a) IN GENERAL.—Paragraph (2) of section 25C(g) is amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2013’’.