Biomass Stove Tax Credit Included in House Infrastructure Bill
The “INVEST in America Act” (H.R. 2), infrastructure legislation that passed the U.S. House of Representatives on July 1, contained updates to energy efficiency tax credits, including the biomass stove tax credit. This legislation, however, is not expected to pass the Senate, as there is disagreement between parties on details of the bill. The legislation would extend the credit until 2026, set a new lifetime limit of $1,200, slightly increase the biomass stove tax credit from $300 to $400, and require that eligible products be at least 75 percent efficient per the higher heating value (HHV) of the fuel. HPBA continues to work with the Alliance to Save Energy to double these numbers (i.e., to a $2,400 lifetime limit and $800 tax credit) in light of COVID-19 impacts. Even with the uncertain prospects of Senate action, House passage of the legislation is a significant step forward.
As we enter July, we remind you that the next several weeks are generally the last chance for significant legislative activity until next year. With the November elections quickly approaching, it is important that any active legislative priorities be addressed in the coming weeks. Otherwise, they will be pushed until next year. When the time is right, you will see legislative alerts from HPBA about contacting your elected officials to support the biomass stove tax credit, which is again set to expire on December 31, 2020. Please contact Rachel Feinstein if you have any questions.