**New for 2021:
Beginning in 2021, if you purchase and install a wood or pellet stove or larger residential biomass heating system with a Thermal Efficiency Rating of at least 75%, you will be able to claim a credit that is uncapped and based on the full cost (purchase and installation) of the unit, in the amount of:
- 26% for systems placed in service between 01/01/2021 through 12/31/2022
- 22% for systems placed in service between 01/0/2023 and 12/31/2023.
The credit must be claimed on the tax return for the year the product installation is completed. Therefore, any product purchased in 2020 that qualifies for the new credit, but is not installed until 2021, should be claimed on your 2021 tax return.
Thermal efficiency rating of at least 75%