Tax Credit for Biomass Stove Supported Encourages Residences to Go Green
The government are taking some serious steps when it comes to promoting and encouraging people to use biomass energy instead of burning more fossil fuels. During winter time, the tendency for residents and even industrial establishments is to pump up their thermostat and increase that heat that it produces. This means more consumption of the fossil fuels. Now, the use of biomass energy is being strengthened by the government through tax credit for biomass stove. It does not just protect the environment. It also leads to greater savings and efficient thermal energy.
President Barack Obama signed the Economic Stimulus American Recovery and Reinvestment Act of 2009. This states that the homeowners will get tax credit for biomass stove that they will use in their homes. This is applicable as long as it is capable of providing 75% biomass energy from wood or pellet. The act covers for burning stove, fireplace or fireplace insert that are being utilized within the residence from 2009 up to 2010. Biomass tax credits are 30% of the total cost, until $1500.
It has to be noted though that there are certain limitation and restrictions to be able to qualify for tax credit for biomass stove purchase.
Here are some of the conditions and facts about the tax credit:
• Tax credit for furnace can be availed if the stove is powered through burning of biomass fuel so that it can produce thermal energy for the residence. The efficiency of the thermal energy it produces should reach 70%.
• Grants for biomass heating can cover even the installation of the equipment if this is necessary in ensuring safety and proper function.
• The grant can be availed in 2009 and 2010.
• Consumer tax credit is up to 30% of expenses and maximum amount that can be considered for computation is up to $1,500.
• The $1,500 spent for energy efficient items can be a sum of various equipment and items that uses alternative energy resource. For example, you can spend $800 on a biomass powered stove and then spend $700 on other products that rely on renewable energy. These can be credited with no problem as long as this is done within the same tax year.
• Credit is applicable only to the current principal resident in the home.
• There should be a certificate of qualification for all the products that will be included in the tax credit. This should come from the manufacturer.
• It is the duty of the person applying for the tax credit to keep the statement of certification for the purpose of keeping records for taxes even if it is not required to attach it to the tax return.
• Biomass grants apply even to stoves and other equipments which are bought within January 1, 2009 until June 1, 2009 but a certification has to be provided by the manufacturer.
The support of the U.S. government when it comes to use of equipment that uses renewable energy like the biomass stove is commendable. The benefits of using alternative energy sources will not only be good for the environment. Considering the credits and savings, homes and industrial establishments can save a lot of money too.