New 30% Tax Credit Applies to Stove Purchase Price and Any Related Costs for Installation
With the signing of the 2022 Inflation Reduction Act, high-efficiency wood stoves now qualify for a 30% tax credit under Section 25(C) of the Internal Revenue Code. This tax credit is effective for installations between January 1, 2023 and December 31, 2032 and is capped at $2,000 annually.
Qualifying Stoves must meet the following criteria:
The stove must meet the 2020 EPA standards.
- The stove must have a minimum efficiency of 75% (HHV). More about High Heat Value (HHV) below.
Comparing High Heat Value (HHV) and Low Heat Value (LHV) Not all wood stove efficiencies are created equal. There are two different metrics for understanding wood stove efficiency: High Heat Value (HHV) and Low Heat Value (LHV). Woodstock Soapstone, like the EPA, uses High Heat Value (HHV) for our efficiency measurements.
High Heat Value (HHV) tests are run using cord wood with approximately 20% moisture content, generating efficiency results similar to what wood stove owner’s experience in their homes.
Low Heat Value (LHV) tests are run as if the wood had zero moisture content, generating results that look better, but aren't reflective of a typical wood stove owner's real world experience.
As an example, a stove tested using HHV may have an overall efficiency of 75% and an artificially higher efficiency of 80% when using the LHV metric.