How to Claim Your 30% Tax Rebate on Your Wood Stove Purchase in 2023

Have you been planning to install a wood stove in your home, but the cost has been a chilling factor? Worry not―you can now save 30% on the purchase and installation of the wood stove. Wondering how? Well, the wood stove idea you've been mulling over just got a little warmer with the 2023 U.S. tax rebate! 

The Inflation Reduction Act, signed last year on August 16th, 2022, includes a provision for the Investment Tax Credit (ITC) for wood or pellet stoves purchases. And under this new legislation, which became effective on January 1st, 2023, and will last until December 31st, 2032, homeowners can now claim a 30% tax rebate on purchases and installations of home heating equipment. So, why not take advantage of this rebate, and install a wood stove in your home, and save 30% off?

Want to know more about what this tax rebate is and how to claim it? Read on for details. 

What Is the Wood Stove Tax Rebate?

The Wood Stove Tax Rebate provides homeowners with a financial incentive to purchase and install highly efficient wood or pellet stoves. This tax rebate is calculated based on the total cost of the appliance and its installation, including chimneys, floor protection, and labor. 

Before January 2023, U.S. consumers who bought wood or pellet stoves were eligible for a 26% tax rebate that was uncapped and was based on the total cost (purchase and installation). However, the stove tax rebate for 2023 has been increased to 30% with a $2000 cap per year, without any lifetime limits. 

So, Which Wood Stoves Qualify for This Tax Rebate?

Basically, a tax rebate or credit for home heating equipment is a means to encourage consumers to buy more energy-efficient heaters. So, only the wood stoves that have a minimum efficiency rating of 75% HHV (Higher Heating Value) or higher are eligible for the rebate. You can check qualified stoves at EPA official site database or reach out to the Stone & Heat team to help you find qualified wood stoves. 

Moreover, to qualify for the 2023 tax rebate, the wood stoves must have been purchased, installed, or both between January 1st, 2021, and December 31st, 2023. This tax rebate is not available for energy-efficient wood stoves bought and installed before 2021.

How to Claim the Wood Stove Tax Rebate

Beginning with the 2023 tax return you will file in 2024, you can claim a 30% tax rebate on your federal income tax return. To claim your tax rebate, you will need documents about the purchase and installation of the stove, as well as the manufacturer's tax rebate certificate. 

• Paper Filing:  When filing your taxes through paper filing, you can claim the credit under Residential Energy Efficient Property Credit on IRS Form 5695.
• Electronic Filing: When filing your taxes through electronic filing, you can claim the credit under the Credits section of Home Ownership and Residential Energy Credit.

Are Wood Stoves a Good Investment?

Over the past two years, gas prices have risen by over $1 per year, while electricity prices (per kilowatt) have increased by 4.3%. And as prices continue to rise, alternative heating sources such as wood-burning stoves have become particularly relevant. With these modern wood-burning stoves, you can heat up to 140 square meters (depending on the model). And thereby can reduce the cost of your primary heat source and supplement. 

Additionally, even if the electricity goes out, the wood-burning stove continues to provide heat. In other words, wood-burning stoves offer a nice degree of security―and allow you to be flexible when heating costs suddenly go up, which undoubtedly makes wood-burning stoves a worthwhile investment.

Also, with the 2023 U.S. tax rebate, purchasing and Installing a wood-burning stove will be generally less expensive as compared to the traditional or gas-fired fireplace. So, if you're in need of a heating source to warm your home, a wood stove is worth looking into.

Where To Purchase Tax Rebate-Qualifying Wood Stoves?

Interested in making an energy-efficient investment for your home? Well, at Stone & Heat, we offer a comprehensive selection of wood stoves in different sizes, materials, and heat output that qualify for a 30% Tax Rebate. Also, our premium products are affordable and available to order online. Browse our wood-burning stoves catalog to order now, or get in touch with us to learn more!