How this Wood Stove Tax Credit Can Save You Up To $2,000 (Expired in 2025)
Updated for 2026: The Biomass Tax Credit expired on December 31, 2025 and is no longer available. This article remains for reference if you’re researching past incentives or recent installations.
Still Looking to Upgrade Your Stove?
When the temperature drops, there’s nothing like the steady warmth of a wood or pellet stove. But did you know that cozy feeling could come with a federal tax credit? Thanks to the Biomass Tax Credit, homeowners who upgrade to an efficient, wood-burning or pellet stove may be eligible to receive 30% back on the total cost, including installation.
Congress created this credit to make it easier and more affordable for families to invest in sustainable heating solutions. For homeowners, that means now is the perfect time to upgrade an aging stove or finally install the one you’ve been eyeing. Not only will you enjoy a warmer, more efficient home this winter, but you’ll also save money come tax season.
How Much Can You Save?
You can save 30% of the total cost of your new wood or pellet stove, including installation. That means if your project costs $6,000, you could get up to $2,000 back when you file your taxes.
Important update: The IRS caps this credit at $2,000 per year for biomass stoves and boilers. This maximum resets annually, but after 2025 the credit will no longer be available.

What Qualifies for the Credit?
Not all stoves are created equal. Only certain high-efficiency models are eligible for the Biomass Tax Credit. To qualify, the product must be a wood stove, pellet stove, or biomass-fueled heating system that’s designed to heat air or water for use inside your home.
It also needs to meet a minimum 75% efficiency rating (measured in HHV—Higher Heating Value), so you’ll want to make sure the model you choose is certified. And keep in mind: the unit must be installed in your primary residence to be eligible. If you’re not sure whether a specific stove qualifies, we’re happy to help you find the right fit and make sure you get the credit you deserve.
What You Need to Claim the Credit
Claiming the Biomass Stove Tax Credit is straightforward, but a little paperwork goes a long way. First, make sure you keep all your receipts for the purchase and installation of your stove. You’ll also need the manufacturer’s certification statement, which confirms that your stove meets the efficiency requirements.
New in 2025: Manufacturers must now register as Qualified Manufacturers (QMs) and provide a four-digit QM code for each eligible product. For installations completed in 2025, it will be sufficient to include this QM code on your tax return.
When it’s time to file your taxes, you’ll use IRS Form 5695 to officially claim the credit. If you have questions along the way, your tax professional can help—or you can reach out to our team, and we’ll point you in the right direction.
How Long Is This Credit Available?
The Biomass Tax Credit is part of a federal incentive program designed to make energy-efficient upgrades more accessible. It applies to qualifying stoves installed between January 1, 2023 and December 31, 2025—so this is the final year homeowners can claim it
Why Now Is the Time to Upgrade
Even without the tax credit, upgrading to a high-efficiency wood or pellet stove is still one of the most effective ways to reduce heating costs and improve comfort in your home. Today’s stoves burn cleaner, heat more efficiently, and give you better control over your space—without relying on government incentives to make the numbers work.

Ready to Save? We Can Help!
Updated in 2026:
While the Biomass Tax Credit has come to an end, the benefits of a high-efficiency wood or pellet stove haven’t gone anywhere. If you’re looking for a smarter, more reliable way to heat your home, now is still a great time to make the switch.
If you live in the Greater Philadelphia area, stop by our Eagleville or Hatfield showrooms to explore our selection of wood and pellet stoves, or start by browsing online to see what’s possible.
Looking for inspiration? View our wood stoves here →
Need help planning your project? We offer flexible financing options and expert guidance every step of the way—from choosing the right stove to professional installation.
Key Takeaways:
This tax credit expired in 2025, but you can still invest in a high-efficiency wood stove.
The credit previously covered 30% of your stove and installation costs, up to a $2,000 cap.
It applied to qualifying wood stoves, pellet stoves, and biomass systems with a minimum 75% HHV efficiency rating.
Eligible units had to be installed in your primary residence.
Even without the credit, modern wood and pellet stoves offer strong long-term savings through improved efficiency and lower heating costs.

















