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$300 Tax Credit on Biomass Fireplaces and Stoves through end of 2016

Building a FireHave you become frustrated with high home heating bills?  Are you considering purchasing a beautiful new fireplace or stove to not only save money but add a touch of elegance to your home?  If so, now is a good time to get serious about it, because the federal government is providing a $300 tax credit on the purchase of these appliances through December 31, 2016.

In order for a unit to qualify, it must burn biomass fuel, which means wood, pellets or some other derivative of wood.  “Biomass” simply means renewable and, unlike natural gas, coal and other heating fuels, wood is completely renewable.

In government and IRS literature about the biomass tax credit, it’s not clear whether fireplace inserts are covered.  However, the EPA treats free-standing wood stoves and wood-burning fireplace inserts similarly in many cases, so inserts may qualify.  If there’s any doubt, talk to a representative at a hearth retailer or chimney services provider to get more details.

The IRS states that appliances qualifying for the tax credit must operate with a thermal efficiency rating of 75% or higher, so keep that in mind as you shop.

“Principal residence”

Qualifying biomass stoves and fireplaces are those that are installed in the tax customer’s principal residence.  Basically that means the home that you live in, as opposed to a mountain cabin you use for two weeks out of the year.

The types of dwellings that can be considered principal residences include single-family homes, manufactured homes, houseboats, mobilehomes and co-op apartments.  You can get more specifics on this and other elements of the biomass tax credit at the Hearth, Patio & Barbecue Association website.

Claiming the credit

The $300 biomass tax credit can be claimed only once.  Meaning, you can’t buy several qualifying appliances and receive the credit for each one.  Additionally, the credit must be claimed for the tax year (in this case, 2016) in which the unit was installed completely and ready to use.

Biomass fuel is good for the environment

This tax credit is clearly designed to encourage homeowners to be more environmentally conscious by using renewable fuels to heat their homes.  Wood, in all its forms, is completely renewable – we chop down a tree, and we plant another one.  Wood fuel leaves no “carbon footprint” on the environment, because as toxins from wood smoke are released through a burn, the living trees absorb these elements.

Wide selection of wood-burning/pellet fireplace and stoves

Pellet Stove Installation - Connecticut Chimney SweepWith today’s highly functional and great-looking fireplace and stove designs, it won’t be hard to find one that perfectly accents your home’s décor, fits your budget and provides you with the warmth and splendor you desire. We can offer you several lines of exceptional units from top-name manufacturers like Regency, Vermont Castings, Pacific Energy, Hampton and Napoleon.

If you are considering adding a stove, insert or fireplace to your home, the experts at Northeastern Chimney of Connecticut are here to help.  And after you’ve had your beautiful new fireplace or stove installed, count on our experienced team to provide the best in cleaning, inspection, maintenance and repair services.  You can reach us for more information at (860) 233-5770.

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