Biomass Tax Credit to Drop to 10%
"The Existing Home Retrofit Tax Credit" (Tax Code Section 25C) that will expire on December 31, 2010 is likely to be extended but at a lesser amount. Over the past two years, individuals have been able to get a a 30% tax credit up to $1,500 for wood and pellet stoves and boilers that are 75% efficient, using the lower heating value. The draft tax bill that reflects President Obama's deal with Senate Republicans currently has this for wood and pellet stoves:
- 10% tax credit
- Cap of $500
- Eliminates use of "lower heating value"
- Expires December 31, 2011.
The cleanest and most efficient wood and pellet stoves and boilers on the market today deserve more parity with solar, wind and geothermal. Some types of renewable energy are not a luxury "green" add on for wealthy families. Wood stoves often enable low-income families to affordably heat their homes in the winter and still have money for food and other necessities. They deserve the opportunity to upgrade their old inefficient and polluting stoves with modern, high tech units that do not emit any visible smoke.
2010 is not the year to reduce the tax credit on the most common and popular piece of renewable energy equipment in America. We urge you to contact your member of Congress and ask them to restore the 30% tax credit for high efficiency wood and pellet stoves and boilers.
Find your congressperson here: