Tuesday, July 14, 2009

Tax credit may pay for wood stoves

As part of the American Recovery and Reinvestment Act, a tax credit of up to $1,500 is available to those who purchase a high-efficiency biomass-burning stove to heat their home.

"That's a pretty big credit because it reduces the tax you pay dollar for dollar so it's better than a 'tax deduction'," said Rita DeLong, who along with her husband Stan, have owned DeLong's Heritage Heating for 30 years.

"My big concern is that people whose only heat source for their home is a wood burning stove may not realize this credit is available for wood and pellet stoves because it's summer and every one is thinking about more efficient and environmentally friendly ways to keep their home cool, not warm."

Stoves manufactured prior to 1991 do not meet the efficiency requirements for this tax credit, which can be up to 30 percent of the cost of the stove. Newer biomass-burning stoves — wood, pellet or multi-fuel stoves — must meet certain EPA as well as IRS standards and come with a manufacturer's certification the stove meets or exceeds the standards required for the credit.

"This is a great incentive for home owners to replace their old gross-polluter stoves. All of the newer stoves have systems which burn not only the fuel being used but also the gases generated from that burning so they put less pollution — fewer particulates — in the air and produce more heat more efficiently," said DeLong.

"I'm glad they are encouraging people to use these affordable, environmentally friendly stoves so they can do their part in 'greening' the environment."

In addition to the cost of the new stove, the cost of labor for installation and chimney upgrades also qualify for the tax credit. And not all the credit has to be used toward the purchase of just one energy-efficient product.

"We do the installation necessary for the stove to operate safely in a home. And, if some one purchases a $700 stove their credit for it would be about $200, leaving them a $1,300 credit to used else where," she said.

This tax credit could be a boon for homeowners with no or older wood stoves, especially those living in the Chico urban area where the Butte County Air Quality Management District is considering mandatory "no burn" days on poor air quality days during cold winter months.

"In the past, we've had incentive funding for homeowners for wood stove replacement, but that district-level funding is no longer available. This federal tax credit through the Recovery Act will help replace that," said Bob McLaughlin, assistant air pollution control officer.

McLaughlin said the district is always looking for ways to help homeowners fund wood stove replacements. In fact, he said, it's one of the "top priorities" especially in Chico where air quality becomes a "significant issue" during the winter months.

Currently Butte County does not meet the federal air quality standards. While the problem centers in the Chico urban area it could have widespread impact on the entire county.

"We're trying to be proactive to solve the problem by limiting burn days, offering the incentives when we had the funds but unless we come into compliance and reduce the levels of fine particulate matter in the air in Chico the effects, like no burn days, could extend to areas beyond Chico," said McLaughlin.

The DeLong's, who have lived in Oroville since 1975 and owned their heating business since 1979 hope it doesn't come to that.

"No matter what your politics are or how you feel about the Recovery Act, I'm hoping that people throughout the county will take advantage of this tax credit so we aren't forced to have no burn days. That's a real hardship for people whose only source of heat is their stove," said DeLong. "Wood stoves are less expensive than furnaces for heating a home and these new ones are environmentally friendly."

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