Residential Energy Tax Credit for Wood-Burning Stoves
- The Residential Energy Efficiency Tax Credit was extended for another year in December 2010. Homeowners who install a qualified home heating unit using biomass during 2011 will receive a credit equal to 10 percent of their purchase and installation costs, though the credit cannot be greater than $500.
- The stove or fireplace must be certified by the manufacturer as meeting the 75 percent efficiency rating.
- IRS Form 5695 must be completed and submitted to the IRS along with Form 1040 during 2012. The information about the credit is shown on line 52 of Form 1040.