• The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) will come into effect on January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2023
  • Credit Amount: Creates a new tax credit of 26 percent of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moves down to 22 percent of purchase and installation costs in 2023 (under Sec. 25D of the U.S. tax code)
  • Qualifying Products: Require qualifying products (any biomass-fueled heater) be at least 75 percent efficient per the higher heating value (HHV) of the fuel that are used to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit.

How to Qualify for the Tax Credit
  1. Install a qualifying Central Boiler outdoor wood furnace (Classic Edge 360, 560 and 760) between January 1, 2021 and December 31, 2023.
  2. Claim the tax credit associated with your qualifying purchase and installation on your federal filing for the tax year.
Summary

This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. Central Boiler, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Central Boiler is not responsible or liable for the taxpayer's ability to receive tax credits.

$300 BIOMASS STOVE TAX CREDIT (25C) – EXPIRED 12/31/2020
  • Anything that qualified for the credit in the past would qualify again. The credit was extended using the same language used for years -- must be at least 75% efficient.
  • Covers qualifying products purchased since the credit expired (December 31, 2017) and until the current credit expires on December 31, 2020.
  • This is a retroactive extension. If you purchased a qualifying product in 2018, you can file an amended return. If you purchased a qualifying product in 2019, it can be claimed on your 2019 return.

How to Qualify for the Tax Credit

  1. Purchase and place in service a qualifying Central Boiler outdoor furnace between December 31, 2017 and December 31, 2020.
  2. Save the purchase receipt and the manufacturer's certification statement for the furnace purchased.
  3. Claim the tax credit associated with your qualifying purchase on your federal filing for the tax year.

Details of the Tax Credit

  1. Tax credit is 10% of the amount paid for the qualifying product (installation costs cannot be included) up to a maximum of $300.
  2. The credit applies to the homeowner's primary residence only.
  3. A tax credit is a dollar-for-dollar reduction subtracted from your tax liability. Therefore, $300 can be subtracted directly from the amount of tax that is owed, or added to a tax refund.

Summary

This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. Central Boiler, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Central Boiler is not responsible or liable for the taxpayer's ability to receive tax credits.