Stove Tax Credit
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Q: What is a tax credit and how does it work? How is it different from a tax deduction?
A: After making the purchase and installing the unit, you claim the credit on your federal tax return. Tax credits are different from tax deductions and in general, are more valuable. A tax credit reduces your tax liability. Depending on your situation, a tax credit can reduce the taxes you pay, or increase your tax refund
dollar for dollar on your tax return. Tax deductions, such as those for mortgage insurance and charitable giving, lower your taxable income.
Q: When did the tax credit go into effect and how long will it last?
A: The tax credit went into effect January 1, 2009, and is valid for qualifying purchases during 2009 and 2010. The unit must be purchased and placed into service during 2009 or 2010, whichever year you are claiming the credit.
Q: How do I know if a product qualifies for the credit?
A: All products that qualify are indicated on Harmanstoves.com and Fireplaces.com, or you may obtain the information from your local dealer.
Q: Does the 30% tax credit apply toward costs incurred for required installation labor and piping?
A: Yes.
Q: How do I apply for the tax credit?
A: After purchasing the product, download and print the official “Manufacturer’s Certificate” from our website, which certifies that the product qualifies for the tax credit. You should keep the certificate for your records, but you are not required to include it, or the sales receipt, when submitting your taxes to the IRS. If you have additional questions, please consult your tax advisor or
the Internal Revenue Code.
Q: What are the financial advantages of using a Harman wood or pellet burning product for heat in my home?
A: You can significantly reduce your heating bills for years to come by using a Harman product to heat part, or all of your home. As we’ve experienced in recent years, prices for natural gas, propane and oil can fluctuate greatly, at times spiking at very high levels. With an energy efficient stove, fireplace or insert, you can turn down the thermostat on your central heat and heat the areas where you live the most with inexpensive wood or pellets. For whole home pellet
heating, Harman offers furnaces and boilers that work either in conjunction with your central heat system, or function as stand-alone units.
Q: Am I contributing to a greener Earth by heating with biomass?
A: Yes. Wood, pellets and other biomass materials are renewable fuels, derived from trees and plants. Burning biomass is considered carbon-neutral, as only the carbon the plant absorbed when growing is released. Whether the wood burns or decomposes, the same amount of carbon is released, with virtually no green house gas effects. In fact, burning wood in one of our EPA-certified clean-burning units eliminates approximately 75-percent of carbon emissions associated with
fossil fuel heating. By doing so, you’re not only controlling air pollution, but helping to decrease our country’s dependence on foreign oil. All Harman biomass products that qualify for the tax credit also qualify within green building programs, such as LEED® for Homes.
Q: Are wood burning fireplaces, stoves and inserts efficient?
A: Yes. Technological advancements have made today’s wood stoves, fireplaces and inserts significantly more efficient than dated models. Harman EPA-certified wood burning units are highly efficient, producing more heat with less wood to provide warmth and comfort for many hours. They are the cleanest burning wood appliances available today, with low ash and minimal outside air emissions. This is made possible by complete combustion, consisting of high temperatures, ample
oxygen and sufficient burning of gases before being exhausted. Complete combustion can also eliminate the accumulation of creosote, a flammable chimney residue.
Q: How efficient are pellet burning units? Are they easy to use?
A: Pellet appliances have great heating efficiencies and low emissions. Harman pellet units burn cleaner than virtually any other biomass fueled appliance and produce minimal particulate matter, helping to control air pollution. They are easy to operate with built-in fuel hoppers and feeding devices that move pellets in small groups to the combustion chamber, where they produce a beautiful, robust fire. The various models have control panels that regulate heat and minimize
fuel consumption.
Q: What are pellets made from and how expensive are they?
A: Pellets are made from compacted sawdust, wood chips, bark, agricultural crop waste, waste paper and other organic materials. Burning them to produce heat is a constructive way to reuse material that may otherwise go to a landfill. Wood pellets are typically purchased in 40-pound bags for between $5 and $7, providing up to 24 hours of steady heat. When compared to the volatile prices of electricity, gas and oil, the price of a bag of wood pellets has remained predictable
for the past decade. Pellets can be purchased at a variety of places – from big box hardware retailers to local farm and garden stores.