Fireplace insert replacement Tax Credit

[OleMountainGoat]

Under the Energy Saving Improvements, which line do I use to enter the amount for the certified insert I had installed?

[DoninGA]

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?

[OleMountainGoat]

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.

[DoninGA]

That is why I asked the question.  Does your fireplace insert burn biomass fuel?

Biomass fuel means any plant derived fuel available on a renewable or recurring basis

[SteamTrain]

1)  IF, your biomass insert did qualify, and IF you installed it during 2021

then it goes on line 5 of the 2021 form 5695.    But if you are using the TTX software, then you should be entering it during the interview. There is a specific line dealing with it in the 2021 software during the entries of your Home Energy Credits.

2) If installed in 2022, that form may not be ready in the TTX software until well into 2023, but the current Draft form the IRS shows has it on line 5 of the form 5695 again 

(but bumped up to 30%????, not sure about that..I thought that was for 2023....it is a "Draft" form so far, so that % might change)

[OleMountainGoat]

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

[DoninGA · Accepted solution]

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@OleMountainGoat wrote:

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

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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

[OleMountainGoat]

Thank you for all your replies and answers.