(broken link removed to http://www.forgreenheat.org/incentives/federal.html)
The individual tax credit that provided consumers with a 30% tax credit on wood heaters in 2009-2010 and a 10% tax credit in 2011, has now expired completely, as of Jan. 1, 2012. The tax credit was part of section 25C of the tax code. The intent of the 25C provision was to advance home energy-efficiency upgrades by providing a monetary incentive through the tax code. This incentive would help consumers overcome the initial upfront cost of installing high-efficiency technology in their homes. In addition to wood and pellet stoves that were more than 75% efficient, the credit applied to insulation, energy efficient windows, etc.
While the 30% tax credit up to $1,500 was significant, it came at a time of recession, and did not result in the uptick of sales that it could have. In 2012, the pubic was still not in much of a buying mood, and a 10% tax credit was not that much of an incentive. Rather, it more likely gave a benefit to those who would have made the purchase anyway.
There is still a chance that a tax credit could be passed in 2012 and it could even be retroactive to Jan. 1, 2012.
