2008 tax questions

[dougcarlo]

I purchased my Solo 40 in June 2008 and was wondering do I get the tax break on this? I don't think I do but wanted to make sure. Thanks Doug

 

[taxidermist]

Nope!!

 

[stee6043]

We all wish we could, trust me!

 

[lepp]

Not for 2008 but there is a tax credit for 2009 & 2010 in the stimulus package.

From the hpba.com website: "The 2009 Economic Stimulus legislation ... includes a 30% tax credit (up to $1,500) for the purchase in 2009 and 2010 of a 75%-efficient biomass-burning stove as measured using a lower heating value."

NOTE: the IRS has not yet issued the guidelines for determining what stoves meet the efficiency requirements to qualify for the credit or how a manufacturer will qualify their products.

No manufacturer can currently guarantee that their units will be eligible for the tax credit because the rules are not final. The IRS may use the HPBA & EPA recommendations on how to calculate that 75% efficiency or they may not.

The hearth industry association, HPBA, has the latest details on their website: http://www.hpba.org/index.php?id=294

 

[Rory]

As I recall, the credit next year is for units placed in service in 2009. I bought my Tarm in 2008, but the installation occurred in 2009, so I'm hoping I lucked out for once in my life. Surely, most folks buying units in 2008 might not have had the installation "complete" until 2009.

 

[lepp]

Hi Rory:

From the HPBA.com website tax credit FAQ webpage: http://www.hpba.org/index.php?id=34

Q: When does this tax credit go into effect and how long will it last?

A: The tax credit goes into effect January 1, 2009 and is valid only for the purchase of a qualifying biomass-burning stove in 2009 and 2010. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010. If a retailer sells a stove before the list of qualifying stoves is made public, the retailer must keep a complete record of the sale (name and full contact information) so the purchaser can be notified.

 

[Vtgent49]

I started my solar DHW in Feb '08, but......didn't finish putzing with it til Apr. '09, or maybe May even. That should work, eh? ;-)

 

[Rory]

Hi Rory:

From the HPBA.com website tax credit FAQ webpage: http://www.hpba.org/index.php?id=34

Q: When does this tax credit go into effect and how long will it last?

A: The tax credit goes into effect January 1, 2009 and is valid only for the purchase of a qualifying biomass-burning stove in 2009 and 2010. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010. If a retailer sells a stove before the list of qualifying stoves is made public, the retailer must keep a complete record of the sale (name and full contact information) so the purchaser can be notified.

Well, at least my luck is consistent....

Me & Albert King, yeh!

 

[oilbegone]

From what I have read so far the placed into service date is the key. I have an invoice from my installer with a January 09 date for some work done to complete the project. Hope that works.
Clint

 

[lepp]

Hi oilbegone,

Can you post a link to that information? That would make a big difference on who would be able to apply for the credit.

Thank you

 

[oilbegone]

<a href=http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c5>From energystar.gov</a>
sorry the link did not work

Tax Credits for Consumers:
Home Improvements
Tax credits are now available for home improvements:

must be "placed in service" from January 1, 2009 through December 31, 2010
must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify)
$1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
must have a Manufacturer Certification Statement3 to qualify
for record keeping, save your receipts and the Manufacturer Certification Statement3
improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

"5Biomass Fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

The IRS defines “placed in service” as when the property is ready and available for use."

 

[stee6043]

I think the "Manufacturer Certification Statement" is the kicker. You won't get one of those from Orlan and I'm not sure Tarm has one either?

 

[heaterman]

Check with your accountant. The verbage in the bill says "stove". There is some debate as to whether that covers or applies to wood burning equipment other than what is traditionally referred to as a wood burning stove. You will also need verifiable documentation that whatever unit you purchased has been tested and shown to meet the 70% threshold. From what I understand this has to be a document from an independent lab test not a manufacturers own testing. Huge difference in the case of all OWB's.

For what it's worth, The accounting firm I use for my business said take the tax credit regardless until and unless the gubmint clarifies what they mean by stove or says you can't. You have to remember that the people making these rules, regs and laws know next to nothing about burning wood.

 

[bamartin06]

Oilbegone, I just spent the "farm" on a Lopi Leyden woodstove with about 20' of doublewalled Metalsbestos piping. I made the purchase in Nov. 2008 but didn't pick the purchase up and install it until January 2009. Will you post the internet address that discusses qualificaiton for the new Tax credit in terms of "placedinto service" again. This is rather important in my situation.

Thank you.

 

[oilbegone]

(broken link removed to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c5)

 

[altheating]

I would bet another requirement will be to have the unit installed by a dealer/installer.

 

[Piker]

For what it's worth, The accounting firm I use for my business said take the tax credit regardless until and unless the gubmint clarifies what they mean by stove or says you can't. You have to remember that the people making these rules, regs and laws know next to nothing about burning wood.

That's not all they know next to nothing about... %-P

cheers