Many pages online still promise a 30% federal credit on a new wood stove. For a stove installed in 2026, that is out of date.
What the federal credit was
ENERGY STAR’s page for the biomass stove credit says it was “effective for products purchased and installed between January 1, 2023, and December 31, 2025.” It was worth 30% of project cost up to $2,000, and the stove needed a thermal efficiency of at least 75% (HHV). It was claimed on IRS Form 5695 (ENERGY STAR).
What that means now
- Installed in 2026: the federal biomass stove credit does not apply.
- Installed in 2025: if the stove met the requirements, the credit may apply on your 2025 return. Check the Form 5695 instructions or a tax professional.
- Bought in 2025 but installed in 2026: the ENERGY STAR wording covers products “purchased and installed” within the window, so ask a tax professional before assuming anything.
Where to look instead
- Your state energy office and the DSIRE database of state incentives.
- Local air-quality districts, which sometimes fund change-outs of old uncertified stoves.
- Your electric or gas utility.
Programs open and close often. Check the program’s own page for current terms before you buy, and keep receipts and the stove’s efficiency documentation.
This is general information, not tax advice.
Sources
- ENERGY STAR, Biomass Stoves/Boilers Tax Credit: https://www.energystar.gov/about/federal-tax-credits/biomass-stovesboilers
- IRS, About Form 5695: https://www.irs.gov/forms-pubs/about-form-5695
- DSIRE: https://www.dsireusa.org/