The Biomass Tax Credit

With the passage of the Big, Beautiful Bill, the IRS Section 25 (c) green energy home improvement tax credit for renewable energy biomass heaters (wood and pellet stoves and fireplace inserts) expires Dec. 31, 2025 instead of Dec of 2032. So, 2025 is your last year to claim the tax credit for qualifying heaters purchased in 2025. It allows homeowners to credit back to their 2025 federal tax returns 30% up to $2,000 for the cost of the heater, pipe or venting needed, labor and other required material, such as hearth boards, when the stove is purchased and installed in 2025.

You can ask us if a stove qualifies or visit the manufacturer’s website for the latest information. Be careful as some stoves did qualify in 2024 but do not qualify in 2025 due to changes in the EPA’s testing and certification criteria.