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Confused About Energy Tax Credits

Help, We want to install a fireplace in our home and we are so confused about the tax credits. Can you please help.
-Ed and Missy in Prescott Valley

Ed and Missy, As part of the 2009 American Recovery and Reinvestment Act, homeowners who install a 75%-efficient biomass stove in 2009 and/or 2010 are eligible to receive an energy tax credit of up to $1,500. This tax credit is not an instant rebate or product discount. It is applicable when filing personal income taxes for the 2009 and/or 2010 tax years. Biomass stoves are defined as fireplaces and stoves that burn wood or pellets. Consumers claim the 30% credit (up to $1,500) on their federal income tax. The credit then increases the tax refund or decreases the amount the taxpayer has to pay. This tax credit pertains to existing dwelling and primary residences and it applies to the complete installation of the product, including labor. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010. To make sure that the product you purchase is certified for the tax refund, the manufacturer will have to certify that the product meets or exceeds the IRS efficiency requirements. A manufacturer’s certification is a signed statement from the manufacturer certifying that the product qualifies for the tax credit. The taxpayer must keep a copy of the certification statement for their records, a copy of this certification does not have to be submitted with the tax return. If you are seriously contemplating the purchase of a fireplace, now is the time with this tremendous tax credit.

Phone: (928) 778-0040


810 E. Sheldon Street, Prescott, AZ 86301

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