What is this new tax credit?
LOPI OR FIREPLACE XTRORDINAIR models below:
Lopi Wood Stoves
VERMONT CASTING WOOD STOVES:
Vermont Castings Aspen C3 Wood Stove
Vermont Castings Dauntless FlexBurn Wood Stove
Vermont Castings Defiant Wood Stove
Vermont Castings Encore Wood Stove
Vermont Castings Intrepid FlexBurn Wood Stove with optional Performance Pack*
QUADRAFIRE - PELLET AND WOOD STOVES:
Quadra-Fire Trekker Series (Pellet Stove, Pellet Insert)
Quadra-Fire Discovery I Wood Stove
Quadra-Fire 2100 Millennium Wood Stove
What happens to the 25(C) tax credit?
- Effective Dates: The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is in effect from January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2023.
- Credit Amount: Creates a new tax credit of 26 percent of the purchase and installation costs (including Labor) for 2021 and 2022 dropping to 22% for 2023 (with no cap or lifetime limit) under Sec. 25D of the U.S. tax code.
- Qualifying Products: Any biomass-fueled heater (wood stove, wood insert, pellet stove or pellet insert) and is 75 percent efficient per the higher heating value (HHV) of the fuel.
- Any product ordered in 2020 that qualifies for the new Sec. 25(D) credit, but isn’t installed and paid for until 2021, can be claimed under the Sec. 25(D) credit on a 2021 tax return. Products may be claimed on the tax return year in which the purchase of the product and installation is complete.
- Please consult with your Tax Adviser to confirm your eligibility for this Tax Credit.
LOPI OR FIREPLACE XTRORDINAIR models below:
Lopi Wood Stoves
- Evergreen™
- Rockport™
- Cape Cod™
- AGP™ Pellet Stove
- Deerfield™
- AGP™ Pellet Insert
- Medium Flush Wood Hybrid-Fyre™
- Large Flush Wood Hybrid-Fyre™
VERMONT CASTING WOOD STOVES:
Vermont Castings Aspen C3 Wood Stove
Vermont Castings Dauntless FlexBurn Wood Stove
Vermont Castings Defiant Wood Stove
Vermont Castings Encore Wood Stove
Vermont Castings Intrepid FlexBurn Wood Stove with optional Performance Pack*
QUADRAFIRE - PELLET AND WOOD STOVES:
Quadra-Fire Trekker Series (Pellet Stove, Pellet Insert)
Quadra-Fire Discovery I Wood Stove
Quadra-Fire 2100 Millennium Wood Stove
What happens to the 25(C) tax credit?
- Eliminates the tax credit for biomass stoves under IRC Sec. 25(C) starting in January 1, 2021 and enacts this provision in its place.