Is there a tax credit for fireplace inserts?

The tax credit for fireplace inserts is effective through December 31, 2013.

How much:

10% of the cost (including installation/labor costs), up to $300.

Timing:

Tax credit in effect in 2011. Must be installed in your "principal residence" between January 1, 2011 and December 31, 2013.

Details:

The law does not specifically mention fireplace inserts and they are not called out specifically by the IRS in any of their guidance. However, the Hearth, Patio, and Barbeque Association (HPBA) has issued a statement that based on EPA's practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to qualify fireplace inserts.

To qualify for the tax credit, fireplace insert must meet the same requirements as biomass stoves:

· they must burn "bio mass fuel"

· they must be used for heat or water heating

· they must have a thermal efficiency rating of at least 75% as measured using a lower heating value

Fireplace inserts are heating units that retrofit into an existing fireplace to improve energy efficiency.

The law defines "biomass fuel" as any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plant (including aquatic plants), grasses, residues, and fibers.

Information on wood burning stoves.

Find qualified models:

There is no master list of qualified fireplace inserts or biomass stoves. The best way to find fireplace inserts that qualify is to ask your retailer or do an Internet search for "tax credit fireplace insert". To verify tax credit eligibility, make sure you get a Manufacturer's Certification Statement.

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Topic Information
  • Topic #: 23002-19316
  • Date Created: 11/23/2009
  • Last Modified Since: 1/28/2013
  • Viewed: 14117
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