Wood Stove Tax Credits & State Incentives | Forge & Flame
Upgrading to a high-efficiency wood or pellet stove can offer meaningful savings through various state and local incentive programs designed to support cleaner, more efficient home heating than older wood stove models. While the former federal Biomass Tax Credit has now ended, many states continue to provide rebates, discounts and other benefits that help offset the cost of an efficient stove upgrade.
Coal, oil and other outdated fuels are perfect if you enjoy a sizable carbon footprint and spending more than you need to on heating. 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 offer a variety of wood and pellet stoves, most of which are eligible for an incentive program. In addition, our DIY brand, PelPro offers five pellet stoves that are all EPA-certified.
*Wood and wood pellets are classified as biomass and are commonly recognized by U.S. states as a renewable energy source, with environmental performance dependent on sourcing and use.
California Rebates and Incentives
California’s Woodsmoke Reduction Program, managed by the California Air Resources Board (CARB), helps residents replace old, high-emission wood stoves with cleaner, EPA-certified models. Homeowners, in specific areas, may qualify for vouchers or rebates to cover part of the cost of upgrading to a certified wood, pellet or gas stove that meets the state’s stringent air quality standards. Funding and eligibility vary by county, with the program designed to improve indoor and outdoor air quality while reducing particulate emissions.
oregon rebates and Incentives
Oakridge Air supports the Oakridge and Westfir communities with funding for cleaner heating solutions, including certified wood stoves, ductless heat pumps and weatherization improvements. Backed by EPA Targeted Airshed Grants, the program aims to reduce smoke pollution and improve local air quality by helping qualified households upgrade from older, higher-emission heating systems.
washington rebates and Incentives
Washington residents may have access to local wood stove changeout programs that help replace older, higher-polluting stoves with cleaner, certified heating systems. While the state does not offer a centralized rebate, many cities, counties and utility providers may provide grants, discounts or low-interest loans for qualified upgrades. These programs support cleaner home heating and help reduce wood smoke and particulate emissions across Washington communities.
idaho rebates and Incentives
The Idaho Department of Environmental Quality (DEQ) offers a Wood Stove Funding Program that provides rebates to residents upgrading from non-certified wood stoves to EPA-certified or cleaner-burning models. Incentives typically cover a portion of purchase and installation costs, as long as requirements are met and funding is available. The program promotes energy efficiency and helps households reduce emissions compared to older models while maintaining comfortable, reliable heat.
vermont rebates and Incentives
Efficiency Vermont provides a $400 instant discount at participating retailers for eligible higher-efficiency wood and pellet stoves. To qualify, stoves must be EPA-certified, meet strict emissions and efficiency standards, and be professionally installed within Vermont. Additional utility incentives may be available depending on your location and eligibility. These programs help residents choose cleaner, more efficient heating options that reduce emissions compared to older models and support long-term home comfort.
All Other State Tax Credits & Incentive Programs
Beyond the programs highlighted above, numerous states and local agencies across the U.S. provide incentives to help residents replace older stoves with cleaner, higher-efficiency models. These programs may include rebates, vouchers, low-interest loans, or state-specific tax credits, depending on local air quality and funding. Because each state manages its own offerings, we recommend checking your state’s environmental or energy department website for current eligibility and program information.
Find Incentives Available in Your Area
Replacing an old stove or choosing a higher-efficiency model can look different in every state, and local incentives often depend on where you live. For the most accurate guidance on qualifying products, installation requirements and incentives available in your area, we recommend connecting with your local authorized Forge & Flame dealer.
Dealers can help you:
- Confirm whether your home qualifies for state or local rebates
- Understand which stove models meet regional incentive standards
- Navigate installation details and required documentation
- Compare options to find the best solution for your space
Speaking with a dealer ensures you get personalized, location-specific advice and helps you make the most of the incentives available near you.
Federal Tax Credit - Expired December 31, 2025
The Biomass Tax Credit, part of the Energy Efficient Home Improvement Tax Credit (IRC Sec. 25C), expired on December 31, 2025. This program previously offered homeowners a 30% credit (up to $2,000 annually) on qualifying higher-efficiency wood and pellet stoves, including installation costs. Although this credit is no longer available for new purchases or installations completed in 2026 or later, the information below is provided for reference and for homeowners who installed eligible equipment before the deadline.
Homeowners who purchased and installed a qualifying biomass stove or insert on or before December 31, 2025, may still claim the credit on their federal tax return. To do so, be sure to retain your detailed purchase and installation receipts, and download our 2023–2025 manufacturer’s certification document. If your product was installed in 2025, then you will also need our four-character PIN: H1E1. This credit is non-refundable, and we recommend consulting a tax professional to understand how it applies to your individual situation.
To qualify under the expired credit, the stove or insert must have met each of the following requirements:
- Purchased AND installed on or before December 31, 2025
- Burned a biomass fuel
- Heated air or water
- Achieved at least 75% efficiency (HHV).
Eligible installations included both primary and secondary residences, and the total claimed cost could include the unit, venting, materials and onsite labor completed before the end of 2025.
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Wood & Pellet Stove Tax Credit FAQs
What types of stoves qualify for state-level rebates or incentives?
Many state and local programs require stoves to meet strict EPA certification and efficiency standards. Most incentives apply to higher-efficiency wood or pellet stoves that meet low-emission thresholds. Some programs also include electric heat pumps or gas units, depending on the region.
Do I need to remove my old stove to qualify for incentives?
Most changeout programs require removing and recycling an older, uncertified wood stove. Some states even require disposal through a certified recycler or participating vendor. This ensures emissions reductions and proper destruction of old, inefficient units.
Are incentives available for both primary and secondary homes?
Many incentives apply to primary residences, but eligibility can vary by state or local program. Some county-level incentives allow rentals or secondary homes, while others do not. Always check your local program guidelines.
What are wood stove “changeout” programs?
Changeout programs are local or state-funded initiatives designed to replace older, high-emission wood stoves with cleaner, more efficient alternatives. They typically offer rebates, vouchers, or low-interest financing and may prioritize households in areas with poor air quality.
Do higher-efficiency wood and pellet stoves actually reduce heating costs?
Yes. EPA-certified stoves burn cleaner and more efficiently, using less fuel to produce more heat than older models. Homeowners often report significantly lower heating bills and better heat consistency compared to older, uncertified units.
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