Vermont Castings and Dutchwest Models Eligible for US Tax Credit

Vermont Castings and Dutchwest Models Eligible for US Tax Credit
PARIS, KY (June 4, 2009)-- Recent economic stimulus legislation has included a 30% (up to $1500) consumer tax
credit on the purchase of a 75% efficient biomass burning stove. This legislation takes effect immediately and,
though the qualifying guidelines were just released this week, is retroactive to any eligible stove purchased since
January 1, 2009. The credit is available through 2010. Tax payers should keep in mind that this is a credit, not a
deduction, on their income tax returns. Therefore the entire eligible amount is credited to their tax bill.
A manufacturer’s certificate of eligibility will be available on mhsc.com and vermontcastings.com. As well, we are
creating hang tags, which will be applied at the factory, for each qualifying model, so when the unit arrives to you, it
will be clearly marked as an eligible product. Additional promotional items such as hanging banners and easel back
counter cards will be available shortly.
The following models are eligible for the credit:
Vermont Castings
• Defiant cast iron catalytic wood burning stove models 1935, 1936, 1937, 1938, 1945
• Encore cast iron catalytic wood burning stove models 2542, 2550, 2557, 2558, 2591
• Intrepid II cast iron catalytic wood burning stove models 1990, 1991, 1997, 1998, 1999
• Defiant cast iron non-catalytic wood burning stove models 1610, 1611, 1613, 1614, 1615
• Encore cast iron non-catalytic wood burning stove models 1450, 1451, 1455, 1456, 1457
• Resolute Acclaim non-catalytic wood burning stove models 2488, 2490, 2491, 2498
• Aspen cast iron non-catalytic wood burning stove model 1920
• Winterwarm small wood burning insert model 2080
• Montpelier non-catalytic wood burning insert models MONTPCB, MONTPEB, MONTPBS
• Stratton wood burning fireplace model STRATTON
Dutchwest
• Cast iron catalytic wood burning stove models DW2460, DW2461, DW2462
• Cast iron non-catalytic wood burning stove models DW2477, DW2478, DW2479
• Steel non-catalytic wood burning stove models DW1000L02, CDW244
MHSC is proud to support the use of renewable energy resources and to enable consumers to maintain ideal
comfort in their homes while reaping the economic and environmental benefits of conservation. All of the
qualifying units are proudly made in the USA and MHSC is proud to help our fellow Americans whether the
economic storm by putting them to work and saving them money at tax time. This is a winning proposition for all.
149 Cleveland Drive Paris Kentucky 40361 800.867.0454 Suite 600, 1901 North Moore Street
Arlington, VA 22209 USA
Phone: (703) 522-0086 • Fax: (703) 522-0548
[email protected]
www.hpba.org
IRS Guidance on Tax Credit for Purchase of Biomass Stoves
On June 1, 2009, the Internal Revenue Service (IRS) finally issued its guidance for the 30%
consumer tax credit (up to $1500) for the purchase and installation of a 75-percent efficient
biomass-burning stove.
In a letter to the IRS in February 2009, HPBA asked for specific guidance on a number of
issues, but we are confident that this minimal guidance is sufficient. We understand that the
IRS is not asking for further testing if a stove manufacturer has already self-certified using
valid test data.
Some important points of the tax credit are:
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To be considered, a stove must use the burning of biomass fuel to heat a dwelling
unit or to heat water for use in such a dwelling unit, and have a thermal efficiency
rating of at least 75% as measured using a lower heating value;
Installation is covered, as long as it is a requirement for the stove’s proper and safe
functioning;
This consumer tax credit is 30% (up to $1500) for the purchase and installation of a
75% efficient stove, and is available in both 2009 and 2010;
The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient
items. For instance, if a consumer claims $900 on a new stove, then he will have
$600 to purchase additional energy saving products in the same tax year;
If a taxpayer uses the entire $1500 tax credit on a competing product then they
cannot use it for a biomass stove in that same tax year;
This credit applies only to existing principle residences;
Manufacturers must provide a certificate of qualification for each product as
required in the guidance which can be obtained for the customer to use;
Taxpayers must retain the certification statement for tax recordkeeping purposes,
but the certification is not required to be attached to the tax return;
Prior purchases made between January 1, 2009, and June 1, 2009 are covered if the
manufacturer offers a certificate of qualification for the product;
If a manufacturer has documentation that a stove has already achieved the required
efficiency rating, no further testing is required;
The IRS has not stated that inserts are covered, or are not covered, but based on
EPA’s practice of treating inserts and freestanding biomass stoves in a similar
fashion, manufacturers may choose to include inserts.
If you would like to read the entire guidance, IRS Notice 2009-53, Non-business Energy
Property, it can be found on www.hpba.org or at www.irs.gov/pub/irs-drop/n-09-53.pdf.
Overall, this tax credit is an outstanding achievement for the biomass stove industry and will
clearly increase demand for the products. Please consult your tax advisor if you have ANY
questions about how this measure applies to your particular circumstance. More
information on this tax credit will be made available as it is learned.
June 2, 2009