Tax Credit
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 completed. As of July 2025, the credit will expire on December 31, 2025.
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
