Biomass Stove Tax Credit Proposed Increase

HPBA sent a letter to Congressional leadership that calls for some changes in the Section 25C tax credit for homeowner energy efficiency improvement in the bipartisan Home Energy Savings Act of 2019. Those changes include: the lifetime limit being cleared and setting a new lifetime limit of $2,400, increase the credit for biomass stoves from $300 to $800, along with other tax credit changes. The legislation requires that eligible products be at least 75 percent efficient per the higher heating value (HHV) of the fuel.

Although most tax credits incentivize the top ten percent of a product category, this change to the biomass stove tax credit would be eligible for at least 40 percent of biomass heaters. The legislation also extends the credit until 2026. This extended period gives manufacturers an efficiency target for future testing if they wish to work towards getting a product to qualify for the tax credit. HPBA and dozens of its members also signed onto a letter written by the Alliance to Save Energy letter to Congress calling for similar improvements and increases to Home Energy Savings Act of 2019 for inclusion in future stimulus legislation. Please send any questions to Rachel Feinstein.

To read HPBA’s letter, you can view it here.