Winter is coming. And if you’re looking to cut down on heating bills and turn your home into a sanctuary for warmth and comfort, installing a wood-burning stove is the way to go. But many people don’t know that having one also has some tax benefits.
A wood-burning stove qualifies as a “solar appliance” and is eligible for generous tax credits or deductions that help you financially.
Want to learn more? Then you’ve come to the right place.
In this article, we’ll tell you everything you need to know about the tax benefits of installing a wood stove in your family home. So let’s get started.
How Can a Wood Stove Help You Save on Your Taxes?
Wood stoves are a great way to heat your home and save money on your heating bills. But did you know that you can also get a tax break for installing a wood stove?
The federal government offers a tax credit for installing qualifying wood stoves, and many states also offer tax incentives. Installing a wood stove can provide significant tax savings and help offset the furnace’s cost.
The Types of Wood Stoves That Offer the Most Tax Savings
How much you’ll save on your taxes by installing a wood stove depends on which type of wood stove you install. The most tax-efficient wood stove is a pellet stove, followed by a wood-burning stove.
Just be sure that you are purchasing and installing an EPA-certified wood stove. EPA-certified wood stoves are at least 75% cleaner than traditional wood stoves.
The Tax Benefits of Installing a Wood Stove
There are many tax benefits of installing a wood stove. A wood stove can save you money on your heating bills and can also help you reduce your carbon footprint.
If you install a wood stove in your home, you may be eligible for a tax credit. The tax credit is based on the cost of the wood stove and the type of fuel you use.
There are also other tax benefits of installing a wood stove, such as the energy-efficient appliance tax credit. The credit is equal to 30% of the cost of the appliance, up to a maximum of $1,500.
There’s also the renewable energy tax credit which can be used for stoves that use wood, pellet, or corn-based fuel. You could receive up to $300 back on your taxes if you qualify.
How Long Will This Tax Credit Last?
The tax credit is available for both primary and secondary residences. To take advantage of this tax credit, you must file Form 1040 with your tax return.
The tax credit is available for stoves installed between January 1, 2017, and December 31, 2022. If this info has got you itching to replace your old, creaky stove and start kicking in the winter warmth with additional tax benefits, then get in touch with Comfort Bilt and look at their range of stoves.
Warmth With Benefits
If you’re looking for a way to lower your heating costs, installing a wood stove may be the answer. Not only does burning wood provide a cheaper heat source, but you may also be eligible for tax breaks.
Check with your local government to see if you qualify for any tax incentives before you make your purchase. With the correct installation and maintenance, a wood stove can be a great way to save on your heating costs.
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