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Rebates and Tax Incentives

Updated: March 2017

Currently, there is no federal tax credit for wood or pellet heating appliances but the $300 tax credit that expired in December 2016 could be reinstated later this year. The Alliance for Green Heat maintains an updated list of state incentives and rebates programs, and stove change out programs.

Eight states provide rebates or tax incentives in some form for pellet stoves. The program in Montana and New York requires the trade-in of an old wood stove (except for low income families in NY).

The Oregon program is only $288 unless the manufacturer disclosed their actual efficiency, which can bring the amount up to $1,500. The Maryland program is a straight $700 rebate and Maine provides a $500 rebate. Idaho provides up to a $20,000 tax deduction. Arizona requires the retrofit of an existing fireplace and Alabama requires the conversion from gas or electricity to primary wood or pellet heat. For low-income households, the New York program is very generous, offering a $2,000 rebate and an additional $500 to turn in an old wood stove.

Several states require pellet stoves to emit no more than 2 or 2.5 grams an hour, which would make the Englander and Ravelli ineligible for incentives in Maine, Maryland, Oregon and New York. The Piazzetta would be ineligible in Maryland and New York. The Harman, Enviro and Quadra-Fire would be eligible for rebates and incentives in all states, because they are all tested to EPA standards at less than 2 grams an hour. None of these companies disclose their actual efficiencies to the EPA, so in Oregon, they would be limited to the $288 rebate amount.

Most programs require professional installation.

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