2009 Wood Stove Tax Credits You Should Be Taking Advantage Of

By: Clay Lamb | Posted: 26th November 2009

Copyright (c) 2009 Clay Lamb

If you have ever entertained the idea of purchasing a woodburning stove, or even a pellet stove, now is the time to do it. For the year of 2009, the government is willing to pay 30% of the cost of the actual appliance itself, plus labor.

Having been in the business of chimneys and their appliances for a while, I would have to say that a lot of the cost of an energy efficient appliance comes hidden, in areas like ventilation, inspection to be deemed "up to code," and labor. Do not fear, the tax credit even covers those things, up to $1500! This is a clear push from our government that biomass appliances are the way to go for our future.

This offer does have a few guidelines. Your appliance must be at least 75% efficient wood or pellet burning stove. Burning wood or pellets help reduce heating costs immensely. Also, the prices for wood and pellets will always stay about the same, seeing that they are a renewable resource. The same cannot be said for propane, natural gas, or oil.

Wood burning units burn wood for fuel and are carbon neutral. They do not emit much particulate matter into the air and create a warm glow in whatever room you choose to burn in. Pellet stoves, much the same emit very little particulate matter, even less than wood!

Pellets are also extremely affordable and a 40 pound bag (about 24 hours of heat) run about 5 dollars a piece. Pellets are actually recycled biomass that would otherwise be taking up room in landfills. They burn cleanly and qualify for green construction building programs.

Now, the truly beautiful part of this whole deal? The fact that you don't have to deal with paperwork or filing. The tax credit is granted to you when you file your taxes. All you need is a certificate of qualification which you can obtain from the appliance's manufacturer.

All in all? If you are looking into a wood burning stove or pellet burning stove, now is the time to do it! This tax credit is only valid for stoves installed thru 2009 via the stimulus plan and should be taken advantage of!

Keep in mind a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions lower your taxable income. If you are in the highest 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit. See one of the more popular wood stoves that qualify for this tax credit.


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Clay Lamb is a chimney expert and owner of American Chimney, in Cincinnati, OH. In 1981 he started a part-time chimney cleaning company. That was over 28 years and more than 75,000 service calls ago. He has helped thousands of homeowners solve problems with their woodburning stoves, stainless steel chimney liner installations and fireplace problems.
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Tags: paperwork, tax credit, propane, natural gas, appliances, ventilation, particulate matter, lamb, landfills, renewable resource, wood burning stove, chimneys, warm glow, wood pellets