Need yet another reason to love wood pellet heat? Wood pellet stoves are covered under the federal biomass tax credit. This means certain ones are eligible for a 30% tax credit of up to $2,000 annually. The credit is based on the total cost of the stove, including purchase and installation. The unit must have a thermal efficiency of at least 75% per the higher heating value (HHV) of the stove.

Not only are you eligible for the tax credit, your wood pellet stove saves you money on home heating costs. That’s a one-two punch any homeowner can get excited about.

This tax credit went live in 2023 and runs through 2032. It applies to the year your stove was installed, not when it was purchased. Save your receipt and the Manufacturer’s Tax Credit Certificate, which proves your unit qualifies when you’re filing your taxes. If you’re buying multiple stoves for your home, the best way to maximize the credit is purchasing and installing the stoves in different years.

Why are wood pellet stoves receiving these types of incentives?

Wood pellets and the stoves that burn them do not require extensive transportation to reach consumers like other non-renewable energy such as gas and oil. Wood pellets are also more sustainable to harvest, requiring little to no extraction, and they burn more cleanly than non-renewables, too.

This latest tax credit, which is part of the Inflation Reduction Act, is “a game changer,” according to Charlie Niebling, a consultant for wood pellet producer Lignetics. Niebling worked for more than a decade to enact the original BTU (Biomass Thermal Utilization) Act. “Our message to Congress for years has been … don’t pick winners and losers,” explained Niebling. “[Wood heat] deserves the same recognition in the federal tax code that solar and wind do.”

With the current tax credits available through 2032, there’s never been a better time to switch to wood pellet heat.

To learn more about this tax credit, and to see what stove is right for you, check out this additional information from our friends at Forge & Flame.

Have you considered making the switch to wood pellet heat, but you’re not sure where to start?

Or perhaps you think about it each fall when the temps start to dip, but it seems too late to make the change?

Now is actually the perfect time to start the process, and there are a ton of associated benefits. Wood pellet heat is an example of “biomass energy,” which is energy produced from organic matter.

Plus, good pellet stoves and inserts add more than just heat to your home. From pellet stove efficiency to available tax credits and heating bill savings, there are numerous reasons homeowners switch to pellet stoves.

Energy Efficiency
A properly maintained and functioning pellet stove is an incredibly efficient heating method compared to oil or other pellet options. A highly rated pellet stove can offer a full day’s worth of consistent heat with one hopper of pellet fuel, lowering your heating costs compared to traditional methods.

The EPA measures pellet stove efficiency and has a list of 100+ pellet stoves that are EPA-certified. Federal tax credits are available for stoves that are at least 75% efficient, per the higher heating value (HHV) of the stove. The credit applies to the tax year in which the stove was installed.

Sustainability
Pellet stoves are a friend of the environment, using biomass fuels for energy, which have extremely low particulate emissions. In fact, burning one ton of pellets (rather than using oil) can reduce carbon emissions by nearly 1.5 tons, according to the Pellet Fuels Institute. Pellet stoves, such as Forge & Flame stoves, are designed to extract the most heat from fuel, and produce lower particulate emissions compared to alternative heating methods such as oil or gas.

Cost Savings
As we mentioned above, pellet stove users also enjoy reduced heating costs. The overall savings depend on your home’s square footage, local climate considerations and stove size. However, studies have shown a pellet stove could heat up to 2,500 square feet for as little as $4 per day. To calculate how much you can save by switching to pellets, visit our pellet fuel savings calculator. What’s more, there’s a federal incentive that permits pellet stove owners to claim a 30% tax credit with a maximum cap of $2,000 per year through December 31, 2032 for stoves installed after January 1, 2023.

Functionality
Pellet stoves are easy to use, and they are automated. They can control temperature with automated pellet feeding systems designed to maintain consistent heat at your set temperature, all without human intervention. Certain models also have automated alerts to remind owners about cleaning and fuel, which increases efficiency and ease of use.

Dependability, Consistency and Longevity
Pellet stoves are incredibly reliable, producing steady, controllable heat over time and providing comfort during cold months. Pellet stoves can last 10-15 years on average. However, proper maintenance and care can extend a stove’s lifetime far beyond this timeframe.

Switching to wood pellet heat offers numerous advantages, from energy efficiency and cost savings to environmental sustainability and ease of use. By investing in a pellet stove, you can enjoy a reliable, consistent, and eco-friendly heating solution that can significantly reduce your heating bills and carbon footprint. Now is the perfect time to make the switch and start reaping the benefits of wood pellet heat.

You’re a satisfied customer of Woodpellets.com, so we know you do your homework, appreciate a good deal, and make awesome choices. We suspect you also like to have fun in your downtime.

Why not combine creativity and craftiness when it comes to the pellets that will keep you warm all winter? Follow in the footsteps of happy client Steve of Massachusetts, who found an inventive way to get his pellets from the driveway to his basement storage area.

“I store my pellets in my basement and for a couple years, my family and I would carry 2-3 tons of pellets from the driveway, through the kitchen and down the cellar stairs, where we piled them on pallets. Then I had an idea. I built a slide on the stairs made of 2x4s and aluminum flashing. We now do 3 tons in under an hour. Two people carry and slide the pellets down the stairs, and one person stays in the basement stacking.”

What a great idea! Here’s a different solution using a slide, shared by another smart pellet burner:

Do you have hot tips for moving, stacking, or storing your wood pellet bags? Share your techniques with us on our Facebook page!