Uncle Sam wants to help you control heating costs by using renewable fuel – and so do we!

Up to $300 Tax Credit

On December 17, 2010, President Obama signed into law the Middle Class Tax Relief Act of 2010. This $858 billion tax package keeps current tax rates in place and extends several tax credits designed to help boost the sluggish economy. One of the credits that were extended with this law is the tax credit for qualifying biomass heating appliances that was originally going to expire on December 31st of 2010.

There were changes to the tax credit though. The current tax credit is for 10% of the purchase price of the appliance, does not include installation costs, and is capped at $300.00 maximum. If you failed to take advantage of the previous tax credit available for purchasing a biomass stove, be sure not to miss out this time.

FREQUENTLY ASKED QUESTIONS

Q: How much is the Tax Credit?
10% of the purchase price of all qualifying products up to $300. A credit is available for purchases made January 1, 2011 through December 31, 2011.

What is a Tax Credit, and how do I receive it?
Consumers claim the credit on their federal income tax form at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay, dollar-for-dollar; whereas, tax deductions simply lower your taxable income. This credit is provided under the terms of the Internal Revenue Code Section 25(d)(3)(E). Taxpayers must retain the Certificate of Qualification and receipts of purchase for tax recordkeeping purposes, but the certificate and receipt are not required to be attached to the tax return. Mason's Corner is not providing tax advice and you are highly encouraged to consult your tax advisor as to actual eligibility for the tax credit.