The US government has announced a powerful new renewable energy
incentive designed to reduce our reliance on foreign oil and increase
clean, efficient home heating with wood and pellet fuels. The US Biomass
Tax credit allows for a 30% consumer tax credit of up to $1,500 per year
on approved wood and pellet burning fireplace products purchased between
January 1, 2009 and December 31, 2010.
Q: What is a federal consumer tax credit?
A:
Consumers claim the credit on their federal income tax form at the
end of the year. The credit then increases the tax refund or
decreases the amount the taxpayer has to pay.
Note: With regard to tax credits vs. tax deductions, in general, a
tax credit is more valuable than a similar tax deduction. A tax
credit reduces the tax you pay, dollar-for-dollar. Tax deductions -
such as those for home mortgages and charitable giving - lower your
taxable income.
Q. Which of
products qualify for this credit?
A. ALL Regency and Hampton
wood and pellet fireplaces, inserts and stoves exceed 75% efficiency
standard and qualify for this US tax credit. That’s 30% back
on ANY
Regency and Hampton wood or pellet product you purchase.
Q. When
should I buy?
A. The sooner you purchase the better.
Buying early, during the summer months guarantees rapid product
availability and installation. This ensures you receive your
product while the credit is still available, allows you to take
advantage of any special offers that may be running and has your
home ready before the winter months. Buy now so you don’t miss
out!
Q. What do I need to do in order
receive my tax credit?
A. Purchase a product, then download and print
the official Manufacturer’s Certificate. This shows that your
product qualifies for the US tax credit. When filing your
return, complete the IRS form F5695 with the necessary information
and submit your sales receipt. The certificate proves
authenticity when filing your return, but does not need to be
submitted. The IRS does require, however, that you hold the
certificate for your personal records.
