It's time for Your Bailout!

Purchase a qualifying stove or fireplace and receive up to a $1,500 Tax Credit*

On June 1, 2009, the Internal Revenue Service (IRS) finally issued its guidance for the 30% consumer tax credit (up to $1500) for the purchase and installation of a 75-percent efficient biomass-burning stove.

In a letter to the IRS in February 2009, HPBA asked for specific guidance on a number of issues, but we are confident that this minimal guidance is sufficient. We understand that the IRS is not asking for further testing if a stove manufacturer has already self-certified using valid test data.

Some important points of the tax credit are:

To be considered, a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75% as measured using a lower heating value.
Installation is covered, as long as it is a requirement for the stove's proper and safe functioning.
This consumer tax credit is 30% (up to $1500) for the purchase and installation of a 75% efficient stove, and is available in both 2009 and 2010.
The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a new stove, then he will have $600 to purchase additional energy saving products in the same tax year.
If a taxpayer uses the entire $1500 tax credit on a competing product then they cannot use it for a biomass stove in that same tax year.
This credit applies only to existing principle residences.
Manufacturers must provide a certificate of qualification for each product as required in the guidance which can be obtained for the customer to use.
Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification is not required to be attached to the tax return.
Prior purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers a certificate of qualification for the product.
If a manufacturer has documentation that a stove has already achieved the required efficiency rating, no further testing is required.
The IRS has not stated that inserts are covered, or are not covered, but based on EPA's practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts.

If you would like to read the entire guidance, IRS Notice 2009-53, Non-business Energy Property, it can be found on www.hpba.org or at www.irs.gov/pub/irs-drop/n-09-53.pdf.

qualifying models from alaska fireplace

Dan sells nothing but the finest products and almost all stoves Dan carries meet the criteria above. (Those that do not are mostly exempt stoves such as cook stoves and sauna stoves.) Dan has made sure that he carries the best in the business for his customers and that has reflected in our great reputation that we earn every day.

Links to more qualifying products coming soon.

Please note this is not a promotion from Alaska Fireplace. This is a tax credit that may be available to you through the federal government. You should review the status of this program and determine whether you qualify.

*Go to www.recovery.gov for details. Ask your tax adviser how this credit may apply for you.