If you’re deciding to add a new wood-burning or wood pellet stove to your home, the biomass tax credit, also known as the wood stove tax credit, is a benefit you may not know. Discover how biomass stoves and other appliances can transform your home while saving you big.
The 2024 wood stove tax credit qualifies specific biomass stoves for a tax credit until 2032. But what does this mean for potential new pellet and wood stove owners?
In this blog, we will cover the parameters of this new tax credit, considerations when buying an EPA-certified wood or pellet stove, and the next steps for adding an efficient stove to your home.
Explore all Forge & Flame stoves to elevate the ambiance in your home and bring warmth to your space.
What Is The Biomass Tax Credit?
As the world shifts to eco-conscious lifestyle habits, the federal biomass tax credit encourages American homeowners to minimize their carbon footprint by investing in efficient home energy.
From January 1, 2023, through December 31, 2032, taxpayers who install qualifying wood and pellet stoves will receive a 30% tax credit that is capped at $2,000 annually, based on the full cost of the unit, including installation. This incentive is another benefit for consumers interested in switching from other heating methods such as oil, gas and electric — or replacing old, inefficient stoves — for a new stove burning renewable biomass fuels.
How Does The Biomass Tax Credit Work?
As part of the Inflation Reduction Act, homeowners looking to make energy improvements like installing biomass heating stoves or heat pumps, are eligible for an increased tax credit. The biomass tax credit covers biomass stoves installed on or after January 1, 2023, until January 1, 2032.
It works by minimizing your tax burden in the form of a credit based on the cost of the product and any installation fees. So, not only does your new biomass stove save you money monthly on your energy bill, but also when tax time comes around.
Some of the added benefits in this iteration of the biomass tax credit include a higher annual maximum and the elimination of the lifetime limit. This tax credit also applies to other energy-efficient home improvements like windows and insulation, but for this article, we’ll focus on the section relating to biomass appliances.
Why Are Biomass Fuel Stoves Eligible?
Biomass is a sustainable, renewable resource. It requires little transportation and is not subject to the same fluctuations in pricing as non-renewable resources like oil and gas, reducing emissions and heating costs.
Biomass fuels are a sustainable heating option that converts plants and wood byproducts into usable energy. These fuel types generate heat when burned, referred to as “thermal biomass,” which is used to heat millions of homes across the United States. Many consumers are switching from expensive, environmentally harmful heating fuels, such as gas and oil, for the numerous benefits of heating with pellets or wood.
Consider adding a wood-burning stove to your home. Find inspiration from the Forge & Flame gallery.
How to Claim the Wood Stove Tax Credit
To ensure you receive your tax credit, keep any paperwork related to the purchase and installation of the stove, plus the manufacturer’s federal tax credit certificate. These documents are essential for proving the stove’s tax credit eligibility, purchase year, stove cost and the year that it was installed in your home.
- Stove Purchase Receipt: This will be used to prove your purchase.
- Manufacturer’s Tax Credit Certificate: This will be used to prove your unit qualifies for the tax credit.
Keep in mind that this tax credit is applied by the year the stove was installed in your home, not the year it was purchased. For example, if you bought a Vermont Castings wood stove in December 2023 and didn’t install it until February 2024, you will file it under the 2024 tax year.
For homeowners looking to add more than one qualified stove, we recommend spreading out the purchases by separate calendar years to fully capitalize on the tax benefits offered through this credit.
How to Access the Manufacturer’s Federal Tax Credit Certificate
Each manufacturer producing qualifying stove appliances should supply a certificate that will be submitted together with your sales and installation receipts. This certificate is the key to ensuring that your federal tax credit is deducted from your annual taxes. Normally, manufacturers upload this certificate to their website.
If you are buying a brand other than Harman, Quadra-Fire or Vermont Castings, be sure to double-check that the certificate includes the necessary information:
- Manufacturer’s name and address
- The class of qualified energy property
- Stove’s make and model number
- Proof of eligibility statement
- Manufacturer’s signature
If you have purchased a Harman stove, you can find a link to download the federal tax credit certificate. Or learn more about Quadra-Fire's certificate, or Vermont Castings' certificate.
Check out our wood stove buying guide to find the perfect zone heating solution for your home.
Other Considerations When Choosing Your Stove
When shopping for a new stove to replace an existing unit or to switch from a different fuel source, there are many considerations to weigh. To make an informed decision, it is essential to understand what is best for your home, lifestyle and needs to keep your home warm all season long.
- Size: As a general rule of thumb, you'll want 20 BTUs of heat output for every square foot of space to ensure your space is adequately heated.
- Heat Capacity: The heat capacity of a stove indicates the maximum amount of space it can effectively heat, measured in square feet or BTUs.
- Heat Efficiency: Heat efficiency refers to how effectively a stove converts fuel into heat, with higher efficiency units using less fuel to produce the same amount of heat.
- Fuel Type: The type of fuel a stove uses (e.g., wood, pellets, gas) affects its operating costs, maintenance needs and environmental impact.
- Ease of Use: This factor encompasses how simple the stove is to operate, including fuel loading, ignition and adjustments to heat output.
- Product Material: The materials used in the stove's construction, such as cast iron or steel, influence its durability, heat retention and aesthetic appeal.
- Cost: The cost of a stove is widely dependent on the brand and features, with most stoves on the market costing $2,000 to $4,000, plus additional installation and labor.
- Maintenance: Maintenance involves the regular care required to keep the stove operating safely and efficiently, including cleaning ash, inspecting for wear, and potentially servicing mechanical parts.
All in all, your values and priorities dictate the best stove for your home. There are a plethora of stoves on the market, which means the perfect stove for your lifestyle and needs are out there — it just takes a little extra research and consideration to ensure a stove will be a good fit for your home. Keep in mind that the tax credit is just one of many benefits of buying a wood or pellet stove. These stoves add ambiance, home value, cost efficiency, reliability and so much more to your space.
For more information on choosing the right stove for your needs, read our complete guide to finding the perfect stove for your home.
Go Beyond Warm with Forge & Flame Biomass Tax Credit Eligible Wood-Burning and Pellet Stoves
Wood and pellet stove rebates and tax credits aren’t the only way to save money with your stove. In addition to being energy efficient and creating that nice ambiance for your space, wood and pellet stoves are easy to use, require little maintenance, and are built to last 15 to 20 years. You can feel good using energy-efficient wood stoves knowing sustainability is at the forefront of these products.
At Forge & Flame, we brought three iconic stove brands together under one umbrella to continue to deliver the best options in American craftsmanship to you and your family. Find out which stove is right for you or shop all biomass tax credit-eligible stoves. Read more fireplace tips and tricks from our experts on our blog page.
Stoves and Inserts Eligible For the 2024 Biomass Tax Credit
Coal, oil, and other fuels are great solutions for your heating needs. However, if you’re interested in increased energy efficiency, a cozy ambiance with zone heating and a renewable energy source, a Forge & Flame alternative heat source is the way to go. But if you’re looking for increased energy efficiency, a cozy ambiance and a renewable energy source, a Forge & Flame alternative heat source is the way to go. Our brands — Harman, Quadra-fire, and Vermont Castings — offer a variety of wood and pellet stoves, most of which are eligible for the federal biomass tax credit.
Harman Absolute63 Pellet Stove
Performance and engineering excellence are infused into every detail of the Absolute. From its transitional styling and industry-leading heat to its whisper-quiet operation and groundbreaking Harman EASY Touch Control, this is the new standard of greatness.
- Size: Up to 3,400 sq ft
- Heat Capacity: 14,100 - 61,800 BTUs
- Heat Efficiency: LHV 83%, HHV 77%
Harman Absolute43 Pellet Stove
Compact and powerful, with the quietest pellet stove operation in its class and the groundbreaking EASY Touch Control system, this cast-iron pellet stove takes home heating to the next level. Performance and engineering excellence are infused into every design and detail—all backed by more than 30 years of uncompromising American quality.
- Size: Up to 2,400 sq ft
- Heat Capacity: 14,100 - 44,200 BTUs
- Heat Efficiency: LHV 82%, HHV 77%
Harman Accentra52i-TC Pellet Insert
Enhanced with our exclusive Easy Touch Control and illuminated glass hopper lid, the Accentra52i-TC includes our legendary Pellet Pro technology, ESP technology, flame-reactive mirrored glass and much more.
- Size: Up to900 - 2,600 sq ft
- Heat Capacity: 11,200 - 50,300 BTUs
- Heat Efficiency: LHV 81%, HHV 76%
Harman Allure50 Pellet Stove
When the fine lines of contemporary design and the engineering excellence of Harman meet, the Allure50 is formed. At its core, the Allure50 features the powerful performance and superior warmth Harman stoves are known for, paired with sleek style and exclusive technology.
- Size: Up to 2,800 sq ft
- Heat Capacity: 15,800 - 52,600 BTUs
- Heat Efficiency: LHV 80%, HHV 75%
Harman P42i-TC Pellet Insert
Ideal for small to medium spaces, the P42i-TC replaces your out-of-date insert or fireplace, creating warmth, style and a lifetime of cozy memories. Experience the engineering excellence of a Harman with the smartest controls, lowest maintenance and exclusive features.
- Size: Up to 800 - 2,100 sq ft
- Heat Capacity: 7,400 - 41,800 BTUs
- Heat Efficiency: LHV 84%, HHV 79%
Harman P61 Pellet Stove
The Harman P61 is an intelligent, biomass-burning machine. Loaded with smart-sensing technology to deliver powerful heat, this impressive, cutting-edge pellet stove will offer optimal efficiency and performance. Make it your own with unique finishing and installation options.
- Size: Up to 1,300 - 3,500 sq ft
- Heat Capacity: 21,400 - 60,700 BTU
- Heat Efficiency: LHV 85%, HHV 79%
Harman P68 Pellet Stove
The P68 pellet stove harnesses the world-class engineering of Harman to deliver unmatched performance. These clean pellet stoves feature smart controls with hassle-free operation, making Harman’s P68 one of the most efficient pellet stoves on the market.
- Size: Up to 1,500 - 3,900 sq ft
- Heat Capacity: 20,200 - 67,600 BTUs
- Heat Efficiency: LHV 85%, HHV 79%
Quadra-Fire Discovery I Wood Stove
The Discovery I is a compact design that provides the perfect amount of heat for smaller spaces with a wood storage bin right below the stove. This stove is easy to light and 12 x 12 ceramic tiles slide in the side panel of the stove so you can change the look any time you want.
- Size: Up to 800 - 2,100 sq ft
- Heat Capacity: up to 44,000 BTUs
- Heat Efficiency: LHV 82%, HHV 76%
Quadra-Fire 2100 Millennium Wood Stove
The 2100 Millennium is the perfect size stove for those cozy spaces that need an easy-to-operate heat source. Automatic Combustion Control (ACC) makes this stove easy to light and allows you to give it a boost of air anytime the fire needs it.
- Size: Up to 800 - 2,100 sq ft
- Heat Capacity: up to 44,000 BTUs
- Heat Efficiency: LHV 82%, HHV 76%
Quadra-Fire Outfitter I Pellet Stove
Be ready for a long winter with reliable, convenient and cost-saving heat from the Outfitter I pellet stove. This stove not only keeps you warm but also helps you “live green” with renewable, clean and dependable fuel. Easily set your comfort level with the dial control or wall thermostat and save money with EPA-certified efficiency.
- Size: Up to 700 - 1,400 sq ft
- Heat Capacity: 9,600 - 33,200 BTUs
- Heat Efficiency: 75% HHV 79% LHV
Quadra-Fire Outfitter II Pellet Stove
Enjoy peace of mind with reliable, efficient warmth and lower fuel bills. The Outfitter II is built for long continuous burns with a 130 pound hopper—twice the size of most stoves and, it’s easy to set your comfort level with the dial control or wall thermostat. There’s no better choice to replace your old pellet stove or switch from wood to pellets, and live sustainably by burning a renewable, clean-burning fuel.
- Size: Up to 1,300 - 2,300 sq ft
- Heat Capacity: 11,700 - 49,200 BTUs
- Heat Efficiency: LHV 88% HHV 82%
Quadra-Fire Trekker Pellet Insert
The Trekker pellet insert with Efficient Energy (E2) technology is the most powerful and efficient insert ever designed by Quadra-Fire. E2 technology helps achieve 83.2% efficiency—saving money by burning less fuel. The standard 7-day programmable thermostat, 52 pound hopper, and easy-clean cast-iron firepot ensure this pellet insert is easy to operate.
- Size: Up to 1,300 - 2,900 sq ft
- Heat Capacity: 16,400 - 51,000 BTUs
- Heat Efficiency: LHV 83%, HHV 78%
Quadra-Fire Trekker Pellet Stove
The Trekker pellet stove with Efficient Energy (E2) technology is the most powerful and efficient pellet stove ever designed by Quadra-Fire. E2 technology helps achieve 83.2% efficiency—saving money by burning less fuel. These efficient pellet-burning stoves are the only stoves available with cast-iron construction on all major components—proving it’s built to last.
- Size: Up to 1,300 - 2,900 sq ft
- Heat Capacity: 16,400 - 51,000 BTUs
- Heat Efficiency: LHV 83%, HHV 78%
Vermont Castings Dauntless FlexBurn Wood Stove
Fearless and resolute, this timeless beauty delivers steady overnight heat even on the fiercest of winter nights. Unwavering and steadfast, yet flexible; exclusive FlexBurn technology provides the option to burn with a catalyst for maximum efficiency. A cast-iron griddle top and optional cooking grill help you connect around food and flame all year long.
- Size: Up to 800 - 2,000 sq ft
- Heat Capacity: up to 45,000 BTUs
- Heat Efficiency: LHV: 83%(Cat), 82%(NC) HHV: 78%(Cat), 77%(NC)
Vermont Castings Defiant Wood Stove
The Defiant provides more than heat: it’s a skillfully crafted, timeless piece of American history. The last original Defiant parlor stove is located in the Smithsonian’s National History collection. Named over 40 years ago to “defy the wintry blast,” today’s Defiant does that and more.
- Size: Up to 1,300 - 2,800 sq ft
- Heat Capacity: Up to 56,000 BTUs
- Heat Efficiency: LHV 84%, HHV 78%
Vermont Castings Encore Wood Stove
The Encore provides more than heat: it’s a skillfully crafted, timeless piece of furniture. Great design bridges beauty and utility, and a finely-fashioned exterior with classic curves and smooth cast-iron finish complements features made with care. Function is an art of its own, and our dedication to the wood stove experience results in components designed with convenience in mind.
- Size: Up to 900 - 2,300 sq ft
- Heat Capacity: Up to 48,000 BTUs
- Heat Efficiency: LHV 83%, HHV 77%
Vermont Castings Intrepid FlexBurn Wood Stove
Compact and efficient, the distinguished Intrepid wood stove offers the classic warmth and timeless beauty synonymous with Vermont Castings, with the convenience of FlexBurn technology.
The style and strength of 100% cast-iron construction, combined with features not found often on stoves of this size, put the Intrepid FlexBurn in a class of its own. When paired with the optional catalytic performance pack, it becomes the cleanest burning wood stove ever certified by the EPA.
- Size: Up to 600 - 1,800 sq ft
- Heat Capacity: Up to 37,000 BTUs
- Heat Efficiency: LHV: 83%(Cat), 80%(NC) HHV: 77%(Cat), 74%(NC)
Wood Stove Tax Credit FAQ
Does a Wood-Burning Stove Qualify For Energy Tax Credit
The wood stove tax credit, also known as the the biomass tax credit of 2023 through 2032 rewards taxpayers who install a biomass stove with a 30% tax credit up to $2,000 annually, but to qualify for the biomass stove tax credit, your stove must meet certain guidelines and have a manufacturer’s certificate showing so. To be eligible for the biomass stove tax credit, it must be an EPA-certified stove with a minimum of 75% thermal efficiency rating.
Explore the full list of Forge & Flame wood stoves that qualify for the tax credit.
Do Pellet Stoves Qualify For Energy Tax Credit?
As long as the stove meets the 75% thermal efficiency requirement, it’s eligible for a pellet stove or wood burning stove tax credit. The biomass tax credit for wood stoves includes pellet stoves and is meant to provide homeowners with even more of an incentive for switching to a biomass stove.
Explore the full list of Forge & Flame pellet stoves that qualify for the tax credit.
Does the Biomass Tax Credit Include Chimneys?
The tax credit for biomass stoves applies to the cost of the unit plus installation fees which include proper venting. Since wood and pellet stoves do not require a chimney, the EPA wood stove tax credit likely won’t cover the cost of a chimney. Consult with your tax professional before assuming it is covered, or check out the full details of the biomass tax credit of 2024 on the IRS website.
Are There Income Limits to Be Eligible For the Biomass Stove Tax Credit?
The wood and pellet stove tax credit in effect from2023 through December 2032 does not require an income limit to be eligible. The maximum annual tax credit on wood stoves increased with the latest version in 2023, and is now up to $2,000 with no lifetime dollar limit and no carryover.
Remember that the federal wood-burning stove tax credit applies in the year it was installed. So, for example, if you purchased your pellet stove in 2022 but didn’t have it installed until 2023, you are still eligible for the pellet stove tax credit increased benefit in 2023. If you purchased multiple stoves in one year, we recommend waiting to have the second one installed until the following year to maximize the tax benefit.
How Long Does It Take to Receive Credit?
To receive your tax credit for your pellet stove or wood stove, you will file it with your taxes the year following the installation (i.e. if you installed the product in 2024, the credit will apply to your 2024 taxes, which are filed in 2025). The rebates on pellet stoves and wood stoves are not refundable, meaning you will not be owed money if your tax burden is less than the credit.
The $2,000 annual maximum applies to heat pumps, biomass stoves, and biomass boilers, so if you plan to have a heat pump or biomass boiler installed, avoid doing them in the same year if you can. There is no lifetime cap, so you can continue to claim the benefit annually on qualified home improvements through the end of 2032. For full terms and conditions, visit the Energy Efficient Home Improvement Credit page on the IRS website.
