If you’re deciding to add a new wood-burning or wood pellet stove to your home, the biomass tax credit, also known as the wood stove tax credit, is a benefit you may not know. Discover how biomass stoves and other appliances can transform your home while saving you big.

The 2024 wood stove tax credit qualifies specific biomass stoves for a tax credit until 2032.

What Is The Biomass Tax Credit?

As the world shifts to eco-conscious lifestyle habits, the federal biomass tax credit encourages American homeowners to minimize their carbon footprint by investing in efficient home energy.

From January 1, 2023, through December 31, 2032, taxpayers who install qualifying wood and pellet stoves will receive a 30% tax credit that is capped at $2,000 annually, based on the full cost of the unit, including installation. This incentive is another benefit for consumers interested in switching from other heating methods such as oil, gas and electric — or replacing old, inefficient stoves — for a new stove burning renewable biomass fuels.