The U.S. Tax Code will Reward You for Converting to a Wood Burning Insert

Jan 1, 2023

Federal Tax Credits:Wood Burning Stoves & Inserts

Wood burning or pellet burning stoves and inserts are a great way to heat your home. And Uncle Sam agrees so much that the IRS will give you a tax credit!

Requirements for Tax Credits:

Thermal efficiency rating (HHV) of at least 75%

Must be installed and in use during the year you apply. Credit for 2022 was 26% with a cap of $2000. In 2023 it increased to 30% with a cap of $2000.

Use IRS Form 5695 to claim your credit: https://www.irs.gov/forms-pubs/about-form-5695

More information on wood burning efficiency and safety can be found here:

Wood Burning Efficiency & Safety

JANUARY 11, 2021 UPDATE: Beginning in 2021, consumers buying highly efficient wood or pellet stoves or larger residential biomass heating systems were able to claim a 26% tax credit. This provision is part of the BTU Act, which has been actively supported by HPBA for the last several years and has been part of our Advocacy Day requests to Members of Congress.

For 2023 this credit is increased to 30% with a $2000 cap.

Requirements: Qualifying products (any biomass-fueled heater) must have a thermal efficiency of at least 75 percent efficient per the higher heating value (HHV) of the fuel.

The EPA certified wood heater database may be referenced.

At Chimney Clean Company we sell and install qualifying wood inserts and pellet stoves and can help you qualify for this tax credit while lowering your energy bill with alternative heat sources.

We prefer Osburn stoves and inserts for quality, performance, ease of installation and maintenance. See below for the specifications of their stoves.

Qualifying Stoves sold by Chimney Clean Company:

If you are interested in a wood burning stove or insert Chimney Clean Company is ready to help.

Smoking back

There are many fireplaces that seem to smoke back into the house no matter what is done. In our experience, the most common cause is that the fireplace simply needs to be cleaned. This is especially likely if the fireplace has gotten worse over time, that is, the smoking back is worse now than it used to be.

Several other possible causes of smoking back are problems with the damper, chimney cap, grate, firewood, or structural problems with the chimney itself. At Chimney Clean Company, we do a full inspection with every cleaning, or we can also do just the inspection if the chimney doesn’t need to be cleaned. This inspection is designed to reveal any causes of smoking back.

Broken chimneys

In the Bay Area, many chimneys were broken in the 1989 Loma Prieta earthquake. Usually, these chimneys are broken at or near the roof line, although sometimes they can be broken further down, even at the ground level.

We are fully licensed masonry contractors. We rebuild broken chimneys. If they are broken at the roof line, this usually entails taking the chimney part of the way down brick by brick, installing steel reinforcing bars, getting an inspection from a city inspector, then rebuilding the chimney back up around the steel rebar.

Missing mortar or damaged bricks

Over time, many chimneys develop places that are missing mortar between bricks, or damaged bricks, either inside the firebox or on the outside of the chimney. These areas can usually be repaired, either by replacing the missing mortar or replacing the bricks themselves. Items such as these can be dangerous because they can allow flames, sparks or hot gases to enter the structure of the house.

Water entry

Sometimes the metal that seals the chimney at the roof, called “flashing”, will come loose or develop leaks. In this case, water sometimes comes into the ceiling of the room and causes water spots and stains on the sheet rock. This flashing should be repaired before the water causes more damage.