Updated October, 2020
Woodstove Replacements and Tax Deductions
Eligible fuels: Wood (uncertified) -> wood (certified); pellet, natural gas, propane
Notable feature(s): This is the only state to offer a 100% tax deduction of the cost of the system over a 3-year period. If you are in the common 25% tax bracket, that means you save 25% of system costs.
The Department of Environmental Quality (DEQ) allows taxpayers who are replacing an uncertified wood stove to receive a tax deduction for three years after they buy a certified wood stove, pellet stove, natural gas, or propane heating unit for their residence. The first year after the purchase they are eligible for a tax deduction of up to 40% of the purchase and installation price. They can receive a tax deduction of up to 20% of the purchase and installation price for the next three years. Each annual deduction cannot exceed $5,000. In March 2017, the City of Pinehurst was redesignated as an attainment area and the Idaho DEQ stated that they will continue the state change-out program to improve the air quality in the area further.
The program is ongoing.
Taxpayers must submit the proper tax paperwork to receive the deduction.
This program is open only to homeowners. Fireplaces (other than inserts) are not included. Taxpayers must submit proof of disposal of their woodstove at a DEQ-approved drop-off site as part of their tax paperwork. The disposal must take place within 30 days of purchasing the new appliance. Professional installation is not required. Idaho does not ban the sale or installation of uncertified stoves statewide, but there are local restrictions within the Sandpoint, Portneuf Valley, and Cache Valley PM maintenance areas and the Boise area.
For more information, please visit contact the Idaho Tax Commission at (208) 334-7660 or the DEQ State Office at (208) 373-0550.