Tax season is here. This is when the rubber meets the road (or when the flame meets the pellet). If you installed a pellet stove in 2024, now’s your time to shine!

Wondering why you get a tax credit for your wood pellet stove or how this credit first came about? You can find more details here.

Now that you’re all caught up, here’s how to file:

• Ensure your unit has a thermal efficiency of at least 75% per the higher heating value (HHV) of the stove. 
• Fill out IRS Form 5695, the, Residential Energy Credits Part II, with your tax return. 
• Claim the credit on line 29c, “Qualified biomass fuel property costs.” 
• Include the cost of the stove and the cost of the professional installation. 
• Remember, the 30% tax credit is capped at $2,000 annually, based on the full cost of the unit, including installation.

Keep in mind that the credit is non-refundable, so you won’t be owed money if your tax bill is less than the credit. This credit can be claimed annually on qualified home improvements through the end of 2032.

The credit for installation of a wood pellet stove falls under the Inflation Reduction Act, giving homeowners who make such improvements increased tax credit eligibility. This credit is in addition to the savings in monthly energy bills seen by wood stove users.

When filling out the applicable IRS Form 5695, consider whether you’ve made other eligible upgrades, including: 

• Solar electric property
• Solar water property
• Small wind property
• Geothermal property
• Battery storage property
• Fuel cell property

Wishing you’d installed a pellet stove before winter set in this year?

It’s not too late!

That’s right, now is actually a great time to switch to a pellet stove. Future you will be glad you upgraded to a heating option that will offer tax rebates! Use our calculator to determine the cost savings you could achieve with a pellet stove!

Where to start?

First, find the right size stove for your home. Determine the square footage of your room or home, depending on where you’ll use the stove and how much you want it to heat. For every square foot of space you want to heat, you’ll need the stove to account for 20 BTUs (British Thermal Units).

Make sure the stove you pick has a thermal efficiency of at least 75% per the Higher Heating Value (HHV) of the stove to ensure you qualify for the rebate.

If you’re still not sure which stove is right for you, call us at 1-800-735-5387 or use our pellet stove finder online.

Next, find the right place to install the stove in your home. Keep in mind a pellet stove requires both electricity and venting.

Pellet stoves need to be properly vented to the outside, typically through a wall or chimney. If you don’t already have an existing venting system, you may need to install one, which can impact your placement options.

Unlike traditional wood stoves, pellet stoves require a power source to run the auger and fan system. Make sure there’s an accessible electrical outlet nearby.

And make sure to consider heat circulation as well. You want to place your stove in a central area where the warm air can circulate efficiently. If you’re heating multiple rooms, consider placing it near open spaces or using fans to help distribute the warmth.

Consider calling a professional. Once you’ve decided on the stove you want, we recommend leaving the installation to the experts.

Switching to a pellet stove isn’t necessarily the time for a DIY project because an improperly installed stove can be a health and safety hazard. A professional installer will ensure your stove meets local building codes, operates efficiently, and keeps your home safe.

Determine which type of fuel you want to use. You’re going to want a quality heating pellet that is low moisture, high BTU, and low ash, which means they offer a cleaner, more efficient and more consistent burn. Luckily, WoodPellets.com offers a variety of pellets that check all those boxes. Making quality pellets is what we do, so you can rest assured you’re getting the best heat with woodpellets.com. To learn more about the options we provide, click here and enter your zip code.

Now you’re ready to make the switch and be toasty warm the next time a snowpocalypse hits!