Wood and Pellet Heater Investment Tax Credit

What does the tax credit require?

  • A qualifying product must have a 75% or higher efficiency rating on the EPA certified wood heater database.

What costs are covered?

  • Purchase costs (including sales tax)
  • Labor costs
  • Venting materials
  • Any electrical work required
  • Hearth pad (part of assembly/onsite preparation)

When to claim credit?

  • Tax credit must be claimed in the year which the product installation was complete

What are the incentive amounts?

  • 2023-2032: 30%-capped at $2,000 annually

What do I need to file for credit?

  • Manufacturer certification statement
  • Purchase receipt
  • Tax form 5965