Tax Credit and Huge Incentives Available for Tarm Biomass Pellet Boilers
As of December 2020, installations of wood-fueled boilers and stoves for home heating with an efficiency of 75% or better qualify for a 26% federal tax credit. The Investment Tax Credit or ITC, which has been available for other renewable energy installations for years, was finally granted for efficient wood heating after almost a decade of effort by the wood heating industry. Please visit this link for more history on the federal tax credit.
In many Northeast states, residents may also still take advantage of state rebates, ranging between $6,000-$10,000. State rebates do not reduce the amount of the federal tax credit. As a rule of thumb, state rebates are considered taxable income. For more information about state rebates, visit this resource page.
Many people have wanted to switch to renewable home heating, but higher installation costs have been a deterrent to pellet boiler purchases compared to gas and oil heating systems. Between the tax credit and rebates combining for savings up to $16,000, pellet boiler installation costs are now very competitive with installation costs for oil or gas boilers.
All Tarm Biomass Fröling PE1 wood pellet boiler installations qualify for the 26% federal tax credit. The tax credit phases down to 22% for installations taking place in 2022 and 2023. At this time, the tax credit will not go beyond 2023. The tax credit should equate to federal tax savings of $5,000-$6,000 per installation and is processed through the homeowner's IRS tax return. The tax credit can be applied to the entire cost of the boiler installation including buffer tanks. Tax credits only apply to completed system installations taking place within the tax year and are not retroactive.
Please consult a tax accountant before making any final decisions. We at Tarm Biomass will provide the required certificates of efficiency and stand ready to answer any questions about pellet boiler installation options
