Updated as of 1/4/2011
Federal Bio-Mass Tax Credit Extended to 2011
The American Recovery and Reinvestment Act of 2009 (Recovery Act) has been extended into 2011. The Federal Bio-Mass Tax Credit includes a 10% consumer tax credit (up to $300) for the purchase of 75%-efficient bio-mass burning stoves (i.e. wood and pellets). This Tax Credit applied only to the purchase of the stove but not towards installation costs.
The new tax credit begins immediately and applies to qualifying bio-mass burning stoves purchased in 2011; the Internal Revenue Service (IRS) has issued a full list of efficiency guidelines regarding which products qualify.
Why is this Happening?
The Recovery Act is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Recovery Act targets investments towards key areas that will save or create good jobs immediately, while also laying the groundwork for long-term economic growth – including $43 billion to "Revive the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy capacity" – which offers a 10% consumer tax credit (up to $300) for the purchase of 75%-efficient bio-mass burning stoves (i.e. wood and pellets) and can be used towards the stove, venting and hearthpads costs.
What Exactly is a Tax Credit?
Consumers claim the credit on their federal income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay, dollar-for-dollar; whereas, tax deductions simply lower your taxable income. Please consult your tax advisor for more.
Why is this Happening?
The Recovery Act is an unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Recovery Act targets investments towards key areas that will save or create good jobs immediately, while also laying the groundwork for long-term economic growth – including $43 billion to "Revive the renewable energy industry and provide the capital over the next three years to eventually double domestic renewable energy capacity" – which offers a 10% consumer tax credit (up to $300) for the purchase of 75%-efficient bio-mass burning stoves (i.e. wood and pellets) and can be used towards the stove, venting and hearthpads costs.
What Exactly is a Tax Credit?
Consumers claim the credit on their federal income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay, dollar-for-dollar; whereas, tax deductions simply lower your taxable income. Please consult your tax advisor for more.
