Portland, Tenn. — People who hear the term fire wood usually think of "warmth," not “renewal energy source” or “biomass.” However that is exactly what it is, and for that reason fire wood used as fuel in an efficient high-performing bio-mass burning stove is a truly green alternative to oil that now qualifies for a tax credit, says Craig Shankster, president of Scandinavian manufacturer Morsø.
However, the prerequisite for this 30% (up to $1500) consumer tax credit on wood stoves is high efficiency. According to Shankster, “Morsø produces some of the most energy efficient, clean burning stoves in the world.” He says that at least 26 or the company’s cast-iron wood stoves have achieved the required efficiency rating and the company is working to provide its dealers with the required “certificate of qualification” to validate that requirement.
The American Recovery and Reinvestment Act of 2009, with renewable energy provisions that allows the Investment Tax Credit (ITC) to be accessible to bio-mass burning stoves, is a welcome initiative for the Danish manufacturer that has been making wood stoves for over 155 years. Its reputation for high-efficiency, Scandinavian designed cast-iron stoves is world class, and its “thinking-green” practices include manufacturing handcraft high-quality cast iron products with 98% recycled material, powering production with 80% renewable energy sources (69% wind & 11% bio gas), and using 100% recycled packaging.
Shankster says that people who take advantage of the tax credit to purchase a qualified wood-burning Morsø stove are making a responsible “carbon-neutral” environmental choice. He explains, “sustainably harvested hard wood is a plentiful, renewable, non-fossil natural product and when used as fuel the CO2 released during burning is being absorbed by the tree that has been replanted; in fact the same level of CO2 would have been emitted by a tree that had been left to rot naturally on the forest floor.”
The Economic Stimulus American Recovery and Reinvestment Act of 2009 legislation that was signed into law by President Obama, included this 30% consumer tax credit (up to $1,500) for the purchase of a 75%-efficient biomass-burning stove. To qualify for this credit, the Internal Revenue Service (IRS) issued the following qualifications:
• 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.
• Taxpayers must retain the certification statement for tax record-keeping 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.
For information on Morsø US and dealer locations visit www.morsousa.com or contact customer service at 866-883-9619.
To learn more about Federal Tax Credits for Energy Efficiency visit www.energystar.gov/index.cfm?c=products.pr_tax_credits