26% Biomass Boiler Tax Credit
What do consumers need to know?
Effective January 1st, 2021, a new tax credit has come into effect for all qualifying Biomass Heaters. This will include our Polar G Class models: G2+ & G3. This legislation was signed into law by the President under Sec. 25(D) of the U.S. Tax Code.
Under this new legislation 26% (uncapped and based on the full cost of unit) of the purchase and installation costs for the tax years 2021 and 2022 may be earned as a tax credit. The tax credit decreases to 22% of purchase and installation costs in 2023.
Homeowners who purchase and install a qualifying G Class model can get the tax credit simply by filling out a form declaring the amount you spent when you file your federal income taxes. As long as your system is installed by the end of 2022, you can claim 26% from your federal income taxes.
The Biomass Stove Tax Credit is a non-refundable tax credit that allows taxpayers to lower their tax liability to zero, but not below zero. The tax credit is available for improvements made to a home that you own and use as your “principal residence.” Nevertheless, the Biomass Stove Tax Credit allows homeowners to apply for their tax credit over multiple years.
Qualifying products (any Biomass-fueled heater) must be at least 75% efficient per the Higher Heating Value (HHV) of the fuel. Biomass heaters must be installed between January 1, 2021, and December 31, 2023. Any product that meets this efficiency rating purchased in 2020 but installed in 2021 can be claimed for this Tax Credit on the 2021 tax return. Products must be claimed on the tax return of the year they were installed.
Paperwork needed to File Taxes:
1. Your purchase receipt, including the cost of product and installation.
2. The manufacture certificate stating that the stove qualifies for the credit and is at least 75 percent efficient per the higher heating value (HHV).
Polar Furnace, inc is not a tax advisor but is relaying this tax credit information and not in any way giving tax advice. Please consult a tax professional for further details regarding your specific tax situation.
If you have any questions, please feel free to reach out to our sales staff!