@M7536 wrote:
I bought and installed a high efficiency biomass boiler in 2022 that met the 75% thermal efficiency threshold for 25(d). I bought it expecting the 26% tax credit. I understand biomass goes to 25(c) in 2023, but what about 2022? Did the IRA retroactively reclassify my 2022 purchase/installation to 25(c)? The 25(c) $2,000 limit is a big change from the 25(d) credit (26% of the unit and installation is considerably greater than $2k). Thanks.
I'm a little handicapped here because my usual go-to source for the text of the actual law has been updated to the new language even though most provisions don't take effect until 2023. What I believe is that for a biomass stove installed in 2022, you will claim the credit under 25D. The increased percentage to 30% is retroactive, but the other changes (including moving the biomass provision to section 25C) are effective 1/1/23. So the biomass stove is still under the old 25D rules for 2022.
(Also, FYI although it doesn't apply to you, the new maximum credit for a biomass stove is $2000; at a 30% rate, that is an installed cost of up to $6,666. The credit is $2000, not the allowable installed cost.)
