Effective January 1st, 2023, a new tax credit went into effect for all qualifying Biomass Heaters. This includes our Crown Royal Pristine Series models: 7200E, 7300E, and 7400E as they exceed the qualifying efficiency ratings. This legislation was signed into law by the President under Sec. 25(C) of the U.S. Tax Code. Under this new legislation, 30% of the purchase AND installation costs (with a cap of $2,000 annually with no lifetime limit) for the tax years 2023 through 2032 may be earned as a tax credit. This credit can be used in conjunction with the $1,200 limit that is available for energy efficient home improvements for a maximum credit of $3,200.
Qualifying products (any Biomass-fueled heater) must be at least 75% efficient per the Higher Heating Value (HHV) of the fuel. Biomass heaters must be installed between January 1, 2023 and December 31, 2032. Products must be claimed on the tax return of the year they were installed.
A non-refundable tax credit will reduce the amount of tax you owe for the year you claim the tax credit and is more of an incentive than a tax deduction, which only reduces the amount of your taxable income. A non-refundable tax credit can reduce the tax you owe to $0 but will not give you a refund.
Greentech Manufacturing, Inc. is relaying this tax credit information and not in any way giving tax advice. You must seek out a tax professional to see what this will do for your specific tax situation.
If you have any questions, please feel free to reach out to your sales representative.
DOCUMENTS TO KEEP FOR TAX RECORDS: Keep your invoices for your stove, installation, parts to plumb the stove, labor (all to be included in your cost for claiming the credit) and keep a copy of our Manufacturer’s Certification Statement which you can download from the link below. These are not necessary documents to send in with your tax return. Retain these documents for your records.
CLAIMING THE BIOMASS TAX CREDIT: You need to fill out form 5695, Residential Energy Credits. This form and instructions can be found here: https://www.irs.gov/forms-pubs/about-form-5695. If you need further assistance, please contact your tax professional. The year in which you claim the credit is when the installation of your stove is complete.
