High-efficiency biomass heating products qualify for a tax credit under Section 25(C) of the Internal Revenue Code (“IRC” or “tax code”). This 30 percent tax credit—capped at $2,000 — is available for masonry heaters and stoves installed on or after January 1, 2023.

Installation Date: To be eligible for the tax credit, install a qualifying Masonry Heater or Stove on or after January 1, 2023. The purchase must be claimed for the tax return year in which the installation is complete.

Either way, you’re eligible for the tax credit.

A tax credit is a reduction of your federal income tax. If you had taxes withheld, you may get a refund. If you owe taxes, it may reduce what you owe.

The form you’ll need for filing for this credit is 5695. If you have questions or need help completing the form, contact your tax professional.

Keep your purchase receipt(s), including the cost of the Masonry heater or stove and installation. You should also have a copy of the Manufacturer’s Certification Statement stating it qualifies for the credit and is at least 75% efficient (HHV).

Both purchase and installation costs (e.g., chimney and related materials, onsite labor) can be included in your total cost.

This summary information is provided as a convenience and may not be relied upon as a substitute for professional tax advice. Warmstone Fireplaces and Designs is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Warmstone is not responsible or liable for the taxpayer's ability to receive tax credits.