Here is what I am being told:
Federal Tax Credit
Effective January 1st, 2021, a new Wood and Pellet Heater Investment Tax Credit came into effect for qualifying purchases completed on or after that date, through December 31, 2023. Found under section 25(D) of the tax code, this new credit covers?26 percent?of the purchase and installation costs (with no cap or lifetime limit) for tax years 2021 and 2022; moving down to 22 percent of purchase and installation costs in 2023.
To qualify, the stove or insert must burn biomass as a fuel, heat air or water, and be at least 75 percent efficient per the higher heating value of the fuel. Installations at primary or secondary residencies can be claimed, and both the purchase and installation costs (venting and related materials, onsite labor) can be included in your total cost.
