|
RECEIVE UP TO A $1500 TAX CREDIT
FOR STOVES PURCHASED IN 2009!!!
Wood stoves and Wood-burning fireplace stove inserts
The 2009 Economic Stimulus Package
received final approval and this means a 30% tax credit (up to $1500) for the
purchase of a 75% efficient or higher bio-mass burning appliance. The
credit applies to purchase from January 1, 2009 thru December 31, 2010 for
material and installation labor.
Take Advantage of this program to get a new wood-burning stove
or replace your older, inefficient wood-burning stove!
Efficient stoves are cleaner burning, use less wood, and cost less to use!
The Hearthstone stoves that qualify are as follows:
Bari Wood, Clydesdale I, Shelburne, Bennington, Herigate, Tribute, Crafsbury,
Homestead, Tula, Equinox, Morgan insert, Clydesdale insert, Pheonix
Some of the Regency stoves we carry also qualify.
See more at
www.hearthstonestoves.com and
www.regency-fire.com
We carry the complete line of Hearthstone and Regency products (except pellet
stoves)
Be sure to keep your sales receipt and certificate for
tax purposes.
Order early BEFORE the fall rush starts in August!
Visit www.recover.gov for details. Ask your tax adviser how this credit may
apply for you.
List of products we carry
2009 Tax Credit Information – Important Details
Signed into law on October 3, 2008, a $300 consumer tax credit
for the purchase of a 75% efficient biomass stove in 2009 was included in the
Emergency Economic Stabilization Act of 2008. The Hearth, Patio & Barbecue
Association (HPBA) and the Pellet Fuels Institute (PFI), succeeded in including
the tax credit to help consumers fight rising home heating costs.
Pertinent language in the legislation reads as follows:
SEC. 302. CREDIT FOR NONBUSINESS ENERGY PROPERTY
• “from January 1, 2009 to December 31, 2009”
• “a stove which uses the burning of biomass fuel to heat a dwelling unit
located in the United States and used as a residence by the taxpayer, or to
heat water for use in such a dwelling unit, and which has a thermal
efficiency rating of at least 75 percent.”
• “BIOMASS FUEL- The term ‘biomass fuel’ means any plant-derived fuel
available on a renewable or recurring basis, including agricultural crops
and trees, wood and wood waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and fibers.”
Guidelines for this tax credit are being determined by the
U.S. Department of the Treasury and the Internal Revenue Service (IRS).
Although the tax credit takes effect January 1, 2009, the guidelines for the
credit should be issued later in January. HPBA will keep the industry informed
on the progress and details of this tax credit. For the latest
information, check the HPBA website,
www.hpba.org, for critical
developments.
Tax Credit FAQs
Q: What is a federal consumer tax credit?
A: Consumers claim the credit on their federal income tax form at
the end of the year. The credit then increases the tax refund or decreases the
amount the taxpayer has to pay.
Note: With regard to tax credits vs. tax deductions, in
general, 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: When does this tax credit go into effect and
how long will it last?
A: The tax credit goes into effect January 1, 2009 and is
valid only for the purchase of a qualifying wood or pellet stove in 2009.
The sales receipt must indicate that the purchase was made between January 1,
2009 and December 31, 2009. If a retailer sells a stove before the list of
qualifying stoves is made public, the retailer must keep a complete record of
the sale (name and full contact information) so the purchaser can be notified.
Q: Who is determining the tax credit guidelines for
the qualifying units?
A: The Department of the Treasury, and specifically, the IRS.
Q: Will other wood and solid-fuel appliances
(like inserts, EPA-certified wood-burning fireplaces and outdoor wood heaters)
qualify for the tax credit?
A: We do not know at this time. Right now, as the
legislation is written, only 75% efficient stoves are included. HPBA
requested that inserts be included, but no confirmation has been received.
Q: Do all pellet stoves qualify for the tax
credit?
A: We do not know at this time. In a letter to the
IRS, we recommended that all pellet stoves be included because EPA has
previously assigned a default efficiency rating sufficient to qualify pellet
appliances. However, we do not have a confirmation from the U.S. Department of
the Treasury or the IRS about whether they will accept or reject this
recommendation.
Q: Why was 75% efficiency selected?
A: The 75% efficiency was designated by the U.S. Congress
in 2005 as part of the Energy Policy Act and was used again for this tax credit.
Unfortunately, with a truncated timeline of the legislation that included this
tax credit, we were not able to change the number to reflect a more realistic
efficiency rating.
Q: How will the 75% efficiency requirement be
determined?
A: HPBA has provided the IRS with extensive information
on product efficiency. The association recommends using the more realistic
Lower Heating Value (LHV) method rather than the Higher Heating Value (HHV) that
is generally used as an efficiency measurement for gas products. This
would include a broader range of efficient biomass products for the tax credit.
We are waiting for the IRS rule on the efficiency testing.
Q: How will a consumer know that a product is
certified?
A: The manufacturer will have to certify that its product meets
or exceeds the IRS efficiency requirements. A manufacturer’s certification
is a signed statement from the manufacturer certifying that the product
qualifies for the tax credit. The IRS encourages manufacturers to provide
these certifications on their websites to facilitate identification of qualified
products. Tax payers must keep a copy of a certification statement for
their records, but do not have to submit a copy with their tax return.
Q: What should a retailer and consumer do while
waiting for qualifying information?
A: Keep exact records of any sale or purchase. It is
imperative that retailers keep records of sales and buyers should save all
receipts for payment along with stove manufacturer and model information.
HPBA will keep the industry up-to-date on all developments on
its website, www.hpba.org.
Text of Tax Credit Legislation
| 
