You can save energy costs and contribute to a greener Earth by heating all or part of your home with biomass fuels. The U.S. Federal government is offering tax credits for homeowners who purchase qualifying wood- and pellet-burning appliances, as outlined below.
|2011 Tax Credit FAQs|
|Q: What is a tax credit and how does it work? How is it different from a tax deduction?
A: After making the purchase and installing the unit, you can claim the credit on your federal tax return. Tax credits are different from tax deductions and in general, are more valuable. A tax credit reduces your tax liability. Depending on your tax situation, a tax credit can reduce the taxes you pay, or increase your tax refund on your tax return dollar-for-dollar. Tax deductions, such as those for mortgage insurance and charitable giving, lower your taxable income.Q: When did the tax credit go into effect and how long will it last?
A: The tax credit went into effect January 1, 2011, and is valid for qualifying purchases made during 2011.Q: Does the 10% tax credit apply toward costs incurred for required installation labor and piping?
Q: How do I apply for the tax credit?
Q: What are the financial advantages of using wood or pellet burning appliances for heat in my home?
Q: Am I contributing to a greener Earth by heating with biomass?
Q: Are wood burning appliances efficient?