New 26% Tax Credit Applies to Stove Purchase Price and Any Related Costs for Installation
The Biomass Thermal Energy Council (BTEC) has been working to implement the Biomass Thermal Utilization (BTU) act for more than a decade - and it’s finally been realized! On December 21st 2020, Congress signed into law a 26% federal tax credit for wood stoves AND wood stove installations complying with these BTU revisions…Meaning more accessibility to clean-burning and modern wood heat for you.
What makes a wood stove eligible for the huge 26% tax credit?
- 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.
- The stove must be purchased and installed in 2021-2022 (there will be a 22% credit available for 2023)
Lucky for you, ALL Woodstock Soapstone wood stoves are among the elite group that meet these qualifications.
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.
Just How Far Will a 26% Credit Go?
For a Woodstock Soapstone Progress Hybrid wood stove, the tax credit would realize about a $1,120 credit off of it’s roughly $4,300 retail price. Pair with this an additional 26% tax credit on the installation of the stove itself, and any Woodstock Soapstone wood stove becomes more accessible than it’s ever been.
Progress Hybrid Retail Cost (with Ash Pan): $4,305.00
Federal 26% Stove Tax Credit: -$1,119.30
Cost After Tax Credit: $3,185.70
Plus, the cost of installation qualifies for the same 26% credit. That means 26% on pipe, chimney and labor!