The 2009 Federal Bio-Mass Tax Credit has been extended and now includes a 10% consumer tax credit (up to $300) for the purchase of 75%-efficient bio-mass burning stoves

(i.e. energy efficient wood stove or fireplace insert).

 

To qualify for the tax credit the following criteria needs to be met:

The credit is for biomass heating appliances, including wood stoves,
pellet stoves, pellet inserts, and wood-burning fireplace inserts.

The appliance must be installed in an existing primary residence, not a
new house or rental property.

The stove or insert must have a minimum efficiency rating of
75% as certified by the manufacturer.

The appliance must be an EPA approved biomass stove.

While this Tax Credit can be applied only to the purchase of a wood stove or wood insert,
installation costs are no longer allowed. It is recommended that homeowners
keep the manufacturer's certificate and invoice from the installer to give
to their accountant and keep for their records.