The 5695 form for biomass stoves states both that 30% of full cost is covered uncapped, and also states only 10% or $300. They contradict each other. Which is correct?

[PattiF · Accepted solution]

The Residential Clean Energy Credit section with a Qualified biomass fuel property is the correct place to enter the cost of a Biomass stove. This credit is for 30% of the cost.

The First screen in TurboTax does not have a spot to enter information about a Biomass unit.

This screen is from the second area in TurboTax where you can enter your expenses.

[SteamTrain]

@PattiF 

You are correct

...BUT....the Learn More, when clicked on next to Energy-Efficient Building Property, on the initial page ...that contains the Help screen which includes the following:

"

• A biomass fuel stove used to heat your home (or water for your home) that has a thermal efficiency rating of at least 75%. Wood and wood pellets are considered biomass. For 2022, the credit isn't capped and covers 30% of the full cost (purchase and installation)."

Even though this is a 10% , $300 max area of the program.

_____________

This is placed in exactly the wrong area of the "Online" TurboTax software. ....and Needs to Be Reported for Correction by the Online software staff so that it stops misleading others (I've seen at least one other person with it misreported on this line too)

(Desktop software doesn't include it there in its help screen, and as such is OK)

[mszczekocki1]

Thanks @PattiF 

So does that mean I should leave the first section blank, even though in the 'Learn More' it states that the Energy Efficient Building property includes Biomass Stoves? And then just put the full cost in the second form which specifically states Biomass Stoves? Or do I put the info in both places?

[PattiF]

You should leave the first section blank. SteamTrain showed that the wording is misleading in the help section.

Enter the full cost in the second form only. Thanks to all for pointing this out.

[island18]

Good afternoon,

Question on the tax credit for biomass stove installs in 2022. My understanding is from 1Jan 2021 through 2022 the tax credit is 26%. The 30% tax credit begins with installs done in Tax year 2023 and beyond. Can someone please confirm? Form 5695 in 2022 TT Premier is applying a 30% credit to my wood stove install.

Thank you.

https://www.energystar.gov/about/federal_tax_credits/federal_tax_credit_archives/2022_tax_credit_inf...

https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question...

[PattiF]

The credit was updated by the federal government. Please see this from Form 5695:

@island18 

[island18]

Thank you. 😁