State Tax Incentives for Residential Wood Pellet Heat

NH Wood Pellets
Residential Wood-Pellet Rebate Program in New Hampshire

Rebates offered for 30% of the system and installation cost, or $6,000, whichever is less, for New Hampshire residents who invest in high-efficiency (80% or greater), bulk-fuel fed, wood-pellet central heating boilers and furnaces that became operational on or after May 1, 2012.

This program has helpful recommendations, which include the use of high quality wood pellets; “The life expectancy of the system will be significantly reduced and the operation and maintenance will be considerably greater if lower quality fuel is used.”

The Incentive Pre-Approval Application for NH can be found here, along with the full program details.

Lower Electric Rates

The Eversource HEATSMART Program provides qualifying customers with a discounted kilowatt-hour rate for their separately metered electric space heating (and cooling if using a heat pump) and electric water heating. To qualify, customers must have permanently installed electric heat and a permanently installed electric thermal storage (ETS) device or a wood, wood pellet or coal stove approved by the company.

HEATSMART Customer Application and full details, here.


Maine Wood Pellets
$500 for Pellet Stove Supplemental Heat in Maine

Requires minimum customer contribution of 2x the supplemental heating incentive. This means total supplemental heating system project cost must exceed 3x supplemental heating incentive. Ex.: $500 pellet stove incentive requires minimum $1,500 total pellet stove installation project cost, or $500 air source ductless heat pump incentive requires minimum ductless heat pump installation $1,500 project cost. (Full information here)

Efficient Energy Loans

Wood and pellet heating systems are eligible for financing through an Efficiency Maine Energy Loan . Eligible homeowners can borrow up to $25,000 to make homes more efficient.


Wood Pellets VT
$2000 for New Pellet Furnace/Boiler Installation in Vermont

Rebates are for new, high-efficiency wood pellet boilers and furnaces utilized as primary central heating systems and are intended to reduce fossil fuel usage (e.g., oil, propane, kerosene). This rebate is valid for new equipment purchased and installed between July 1, 2015 and December 31, 2015 by commercial, industrial and agricultural customers of Vermont electric utilities.

Customer application here, valid July 1 through December 31, 2015.


Wood Pellets MA

Expanded Heat Loan in Massachusetts

Wood Pellet Boilers:  0% interest loan up to $25,000 with terms up to 84 months. The boiler must be installed in a 1-4 unit residential building as a central heating system, must meet detailed specifications, including a thermal efficiency rating of 80% or greater. Full information can be found through MassSave, here.

MassCEC Clean Heating and Cooling Program

Rebates of up to $12,000, based on system size, to eligible homeowners who install qualifying central wood pellet heating systems. Residents interested in central wood pellet heating systems for their homes can work with an eligible installer to determine if a system would work in their home. Installers will work with homeowners to determine eligibility for rebates, as well as navigate the application process. Learn more, here.


Wood Pellets NY

$1000 Incentive or Financing in New York 

There are two incentive options, determined by income, for NY homeowners. A rebate of $1,000 is available for the purchase of a new pellet stove with recycling of an existing wood, pellet stove, or insert (with firebox), in a primary residence. Or, households with income less than 80% of county median may qualify for an incentive of $1,000 for the purchase of a new pellet stove in a primary residence, and an additional $500 if an existing wood, pellet stove, or insert (with firebox) is recycled.

The NYS Guide to Participating in the Residential Pellet Stove Incentive Program can be found here.



More Information:

Didn’t see your state listed? Use the search tool on – the most comprehensive source of information on incentives and policies that support renewable energy and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University and is funded by the U.S. Department of Energy.

Fuel Assistance: LIHEAP assists eligible low-income households with their heating and cooling energy costs, and, if the state chooses, to weatherize homes. The full State and Territory Contact Listing can be found here. 

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