Biomass Stove Credit

Forum|Forum|3 years ago
January 31, 2023
4 replies
30 views

2022 provides for a 26% tax credit for a biomass stove to include costs of purchase and installation. Form 5695 caps a credit at $300 but the credit, created in 2021 allows for up to 26% of the total cost. I can't find a form that allows for this credit.

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

I havent even looked at this form yet, but are you sure youre inputting it on the correct line of the 5695?

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M

Mike PolacekAuthor

Level 4

I cannot find a line anywhere that allows for the 26% credit. The top part of the form as a biomass line as part of geothermal that gives 30% credit. Everything else below is capped per item with the $500 lifetime limit. The credit is supposed to be 26% uncapped.

Just-Lisa-Now-

Intuit Community Champion

looks like the form isnt updated correctly then, yes it should be 26% @1569 this needs to be addressed

Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including acquating plants), grasses, residues, and fibers.

**New for 2021:

Beginning in 2021, if you purchase and install a wood or pellet stove or larger residential biomass heating system with a Thermal Efficiency Rating of at least 75%, you will be able to claim a credit that is uncapped and based on the full cost (purchase and installation) of the unit, in the amount of:

26% for systems placed in service between 01/01/2021 through 12/31/2022
22% for systems placed in service between 01/01/2023 and 12/31/2023.

The credit must be claimed on the tax return for the year the product installation is completed.

https://www.energystar.gov/about/federal_tax_credits/federal_tax_credit_archives/2022_tax_credit_information

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T

TaxGuyBill

Level 15

It goes on line 5. It is 30%.

For 2022, the Biomass credit is still part of Section 25D. The law retroactively changed 25D to 30% for 2022.

For 2023, the Biomass credit moves to Section 25C (it was NOT retroactively moved to 25C, so it is still part of 25D for 2022), and follows some slightly different rules.