Wood stoves are a great way to heat your home and save money on your energy bills but the upfront cost of a wood stove and installation can be quite the investment.
The good news is that the "2023 wood stove tax credit" can help you offset the cost of buying and installing a new wood stove. You can receive up to a 30% tax credit on the cost of the unit and its installation, up to a maximum of $2,000.00, from January 1, 2023, through December 31, 2023.
How to qualify for the wood stove tax credit:
To qualify for the wood stove tax credit, your wood stove must be certified by the Environmental Protection Agency (EPA) as meeting certain emissions standards
You can find a list of EPA-certified wood stoves on the EPA's website here: EPA List of Certified Wood Stoves
How to claim the wood stove tax credit:
To claim the wood stove tax credit, you will need to file Form 5695 with your federal income tax return. You will need to provide documentation of the purchase and installation of your wood stove, such as receipts and invoices.
Benefits of wood stoves:
Wood stoves offer a number of benefits, including:
- Savings on energy bills: Wood stoves are a very efficient way to heat your home, which can save you money on your energy bills.
- Environmental benefits: Wood stoves now efficiently burn renewable wood fuel, which produces fewer greenhouse gas emissions than other types of heating systems such as those that burn fossil fuels.
- Comfort: Wood stoves provide a warm and inviting atmosphere in your home.
The 2023 wood stove tax credit is a great way to save money on a new wood stove. If you are considering installing a wood stove, be sure to check with your tax advisor to see if you qualify for the credit.
For more information on who can qualify for this tax credit please visit the IRS's instructions on filing Form 5695 here: Instructions on completing form 5695