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wgalb
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2022 Biomass Stove 25(D) Tax Credit - TurboTax figures at 30% but credit is 26% for 2022

Purchased a wood stove in 2022 that qualifies for the biomass stove tax credit which is listed as 26% with a carryover if all is not applicable for this year. However, when entered in TurboTax it gives 30% which is too high. Not sure how to get the right percentage.

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2022 Biomass Stove 25(D) Tax Credit - TurboTax figures at 30% but credit is 26% for 2022

The credit is 30% for tax year 2022.

IRS Form 5695 Residential Energy Credits Instructions (2022) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

 

You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.

 

Qualified biomass fuel property costs. Qualified biomass fuel property costs are costs for property which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel). Biomass fuel means any plant derived fuel available on a renewable or recurring basis

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2022 Biomass Stove 25(D) Tax Credit - TurboTax figures at 30% but credit is 26% for 2022

The credit is 30% for tax year 2022.

IRS Form 5695 Residential Energy Credits Instructions (2022) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

 

You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.

 

Qualified biomass fuel property costs. Qualified biomass fuel property costs are costs for property which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel). Biomass fuel means any plant derived fuel available on a renewable or recurring basis

2022 Biomass Stove 25(D) Tax Credit - TurboTax figures at 30% but credit is 26% for 2022

The biomass fuel credit is the most complicated change to section 25D and 25C.   For 2022, the biomass credit is under section 25D, and the Inflation Reduction Act retroactively restored the percentage to 30% for all of 2022, with a maximum credit of $300.

https://ttlc.intuit.com/community/tax-law-changes/discussion/faq-revisions-to-section-25d-residentia...

 

Beginning on 1/1/23, the credit moves to section 25C, and the maximum credit is increased to $2000.  

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