Information from the HPBA and IRS

The tax credit for biomass heating appliances is available for installations through to Dec 31, 2024.

Applicable systems, whether they are stoves purchased to heat space or larger, whole-home heating systems, will now qualify for a renewable energy investment tax credit (Section 25(C) of the Internal Revenue Code). Beginning in 2023, consumers buying highly efficient wood or pellet stoves will be able to claim a 30% tax credit, capped at $2,000 annually. The credit is for appliances installed between January 1, 2023 and December 31, 2024. To be eligible for this credit, the appliance must have a thermal efficiency of at least 75% (HHV).

Please be aware that in 2025 the ongoing program was determined to end early, on Dec 31st, 2025. Additionally, an unexpected change in requirements was implemented which would require manufacturers to set up a US entity and register for PIN or QM Codes for applicable products installed after January 1st, 2025. This process, however, is prohibitive and would not apply retroactively to products already in the field.

We regret that although these products technically meet the performance criteria for this program, the new requirements make obtaining a credit under this program highly unlikely if purchased and installed within 2025; please be sure to always consult your tax advisor or local agencies to verify any credit availability.

List of eligible Pellet Stoves and Inserts manufactured by Sherwood Industries

(Please consult your tax advisor to determine whether you qualify for any potential income tax credits
or visit the Hearth, Patio & Barbecue’s website, or IRS for more information.)

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