What is the Energy Tax Credit?
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was signed into law on February 17, 2009. It includes a 30% consumer tax credit (up to $1,500) for the purchase of insulation, windows, doors, water heaters, and biomass (wood) burning stoves with a minimum thermal efficiency rating of 75%. Purchases must be made between January 1, 2009 and December 31, 2010. The credit is for new equipment, in an existing principle residence, owned and used where the tax payer is the original owner of the home.
How much is the Tax Credit?
The Tax Credit is for 30% of the purchase price up to $1,500. It is available for 2009 and 2010. However, the Tax Credit is an aggregate; the total $1,500 can include other energy efficient items. As an example, if you were to claim $800 on the purchase of a new stove, then you would have $700 available to purchase additional energy saving products in the same tax year.
How do I get the Tax Credit?
You can claim the credit on your Federal Income Tax at the end of the year. The credit either increases your tax refund or decreases the amount you have to pay, dollar-for-dollar. This is provided under the terms of the Internal Revenue code Section 25(d)(3)(E). You must retain the receipts of purchase (and installation if applicable) and the Qualification Certificate for tax record keeping purposes. You should consult your tax professional with questions on how to obtain this credit after purchase of a qualifying product.
Certificate of Qualification
You must obtain and retain a "Manufacturer's Certificate of Qualification" in your tax records for products you purchase. For your convenience, the following links will allow you to download the certificates for some of the products we promote. If you do not see a manufacturer listed here, please check the manufacturer's web site for the certificate.
Breckwell Pellet Stoves
Englander Wood & Pellet Stoves
Vogelzang Wood Stoves
For full details of the Tax Credit, read IRS Notice 2009-53 or visit http://energystar.gov/taxcredits
