Fireplace insert replacement Tax Credit

Forum|Forum|3 years ago
November 9, 2022
1 reply
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Under the Energy Saving Improvements, which line do I use to enter the amount for the certified insert I had installed?

Best answer by DoninGA

Sorry, I did not understand "Biomass" yes it is wood burning

@OleMountainGoat wrote:

Sorry, I did not understand "Biomass" yes it is wood burning

You would enter the cost of the insert on the screen for Additional Energy-Efficient Improvements on the line for biomass. This screen is after the screen Energy Saving Improvements

DoninGA

Level 15

Fireplace inserts are not a qualified energy property eligible for the Energy Efficient Home Improvement Credit.

See IRS Form 5695 Instructions for the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit - https://www.irs.gov/pub/irs-pdf/i5695.pdf

Or are you referring to an insert that is only for burning biomass fuel?

OleMountainGoatAuthor

Level 2

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.