Biomass Tax Credit


Beginning in 2023, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems may be eligible to claim a 30% tax credit – capped at $2,000 annually – based on the full cost (purchase and installation) of the unit. The credit runs through December 31, 2032. The 10-year term and 30 percent credit have been big components of HPBA’s advocacy push of the Biomass Thermal Utilization (BTU) Act over many years.

Q. Which of your products qualify for this credit?

A. Click the manufacturer’s link on each page and navigate to their information to determine which products qualify for this U.S. tax credit.

Q. What do I need to do in order receive my tax credit?

A. Purchase an approved unit, then download and print the official Manufacturer’s Certificate from their websites. Click the link to download the Certificate or if you need more information click the manufacturer’s website link that appears on each page of our site and navigate to the information. Not all manufacturers have the Certificates on their websites as yet but will be adding them throughout the year. But each manufacturer will show which product qualifies for the 2023 U.S. tax credit. When filing your return, complete the IRS form F5695 with the necessary information and submit your sales receipt. The certificate proves authenticity when filing your return, but does not need to be submitted. The IRS does require that you hold the certificate for your personal records.

Q. What if I have more questions about the tax credit?

A.  Click on the link to be taken to the website for more information.

Serving your fireplace & wood heating needs in Georgia & Alabama since 1975