Wood Stove Tax Credit

Since May 15th, 2020, wood stoves and inserts being sold had to be meeting much stricter emissions limits. In 10 years, the EPA limits went from 7.5g/hr down to 2g/hr. In the 2020 standard, an official efficiency standard was setup by the EPA. It is called HHV, or Higher Heating Value. This new way to calculate the efficiency of a woodstove is more reflective on the efficiency experienced in the real world.

The HHV efficiency takes the full value of BTU contained in a log as the divider of the BTU transferred inside the room where the wood stove is. Getting a HHV score higher than 70% is an outstanding achievement! The engineers who worked at fine tuning the woodstoves to meet the lower grams per hour combined to efficiencies over 70% have done phenomenal work. That seemed impossible just a few years ago.

Ambiance partnered with a Vermont manufacturer to create a new series called the Hipster. Hearthstone pioneered the TruHybrid technology ahead of the 2020 regulations and obtained exceptional combustion results!

We are thankful to have partners like Hearthstone that is manufacturing the Ambiance Hipster woodstoves. Both the Hipster 14 and the Hipster 20 qualify for the 25-D Tax Credit.

What is the 25D Tax Credit?

  • This is for the USA only.
  • In 2021 and 2022, if you are buying a woodstove with a HHV efficiency higher than 75%, you will be able to claim a 26% tax credit that is uncapped and based on the full cost of the wood stove, including purchase AND installation.
  • In 2023, the tax credit will remain in effect for the entire year, but the percentage will be 22%.
  • You will claim your tax credit when you file your taxes on IRS form 5695 under “Residential Energy Efficient Property Credit “.
  • Your purchase receipt (showing cost of product and installation) needs to be in your files. You will also need the Ambiance certificate stating that your Hipster wood stove qualifies for the credit and is at least 75 percent efficient HHV.

We want to thank the IRS for helping homeowners gain access to higher technology stoves. Higher efficiency stoves tend to cost more but yield higher results too. The IRS is therefore helping in providing an option to homeowners while choosing their woodstoves.