Wood and Pellet Heater Tax Credit Update and What's Next

As previously reported, the U.S. House of Representatives was unable to hold a vote on a large reconciliation bill on Friday, November 5. They did vote on an infrastructure bill, but they did not vote on the legislative language affecting energy efficiency tax credits.

The House hopes to hold a vote before Thanksgiving, which means there will be a vote-a-rama showdown in the U.S. Senate between U.S. Thanksgiving and Christmas.

For advocacy purposes, this only means there is more time to amplify our message.


Tell Us Your Tax Credit Story


Share with us a story/example (you can share more than one story) of how a customer bought a new stove because of the tax credit, how a customer saved money on home heating, and/or how your sales have been affected because of the tax credit.


Why?

When talking to legislators and their staff about why they should extend and strengthen the tax credit for qualifying wood and pellet heaters, they are very interested to hear the impact the tax credit has had on purchasing decisions. They are also interested in how those purchasing decisions have affected small businesses.


What's in the Bill


Right now, the language would:

  • Tax law: Move the tax credit from Section 25(D) to Section 25(C) of the tax code

  • Active date: Extend the credit 10 years, through December 31, 2031

  • Credit amount: Increase the credit to 30% of purchase and installation costs

  • No limit: There would be no lifetime limit or cap on the amount a qualifying taxpayer could claim under a 30% credit

  • Efficiency requirement: Qualifying products must have a thermal efficiency of at least 75% per the higher heating value (HHV) of the fuel


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