Guide to 2024 Tax Season for Wood Pellet Stove Owners

Tax season is here. This is when the rubber meets the road (or when the flame meets the pellet). If you installed a pellet stove in 2024, now’s your time to shine!

Wondering why you get a tax credit for your wood pellet stove or how this credit first came about? You can find more details here.

Now that you’re all caught up, here’s how to file:

  • Ensure your unit has a thermal efficiency of at least 75% per the higher heating value (HHV) of the stove. 
  • Fill out IRS Form 5695, the, Residential Energy Credits Part II, with your tax return. 
  • Claim the credit on line 29c, “Qualified biomass fuel property costs.” 
  • Include the cost of the stove and the cost of the professional installation. 
  • Remember, the 30% tax credit is capped at $2,000 annually, based on the full cost of the unit, including installation.

Keep in mind that the credit is non-refundable, so you won’t be owed money if your tax bill is less than the credit. This credit can be claimed annually on qualified home improvements through the end of 2032.

The credit for installation of a wood pellet stove falls under the Inflation Reduction Act, giving homeowners who make such improvements increased tax credit eligibility. This credit is in addition to the savings in monthly energy bills seen by wood stove users.

When filling out the applicable IRS Form 5695, consider whether you’ve made other eligible upgrades, including: 

  • Solar electric property
  • Solar water property
  • Small wind property
  • Geothermal property
  • Battery storage property
  • Fuel cell property

Can I Switch to a Pellet Stove in the Middle of Winter?

Wishing you’d installed a pellet stove before winter set in this year?

It’s not too late!

That’s right, now is actually a great time to switch to a pellet stove. Future you will be glad you upgraded to a heating option that will offer tax rebates! Use our calculator to determine the cost savings you could achieve with a pellet stove!

Where to start?

First, find the right size stove for your home. Determine the square footage of your room or home, depending on where you’ll use the stove and how much you want it to heat. For every square foot of space you want to heat, you’ll need the stove to account for 20 BTUs (British Thermal Units).

Make sure the stove you pick has a thermal efficiency of at least 75% per the Higher Heating Value (HHV) of the stove to ensure you qualify for the rebate.

If you’re still not sure which stove is right for you, call us at 1-800-735-5387 or use our pellet stove finder online.

Next, find the right place to install the stove in your home. Keep in mind a pellet stove requires both electricity and venting.

Pellet stoves need to be properly vented to the outside, typically through a wall or chimney. If you don’t already have an existing venting system, you may need to install one, which can impact your placement options.

Unlike traditional wood stoves, pellet stoves require a power source to run the auger and fan system. Make sure there’s an accessible electrical outlet nearby.

And make sure to consider heat circulation as well. You want to place your stove in a central area where the warm air can circulate efficiently. If you’re heating multiple rooms, consider placing it near open spaces or using fans to help distribute the warmth.

Consider calling a professional. Once you’ve decided on the stove you want, we recommend leaving the installation to the experts.

Switching to a pellet stove isn’t necessarily the time for a DIY project because an improperly installed stove can be a health and safety hazard. A professional installer will ensure your stove meets local building codes, operates efficiently, and keeps your home safe.

Determine which type of fuel you want to use. You’re going to want a quality heating pellet that is low moisture, high BTU, and low ash, which means they offer a cleaner, more efficient and more consistent burn. Luckily, WoodPellets.com offers a variety of pellets that check all those boxes. Making quality pellets is what we do, so you can rest assured you’re getting the best heat with woodpellets.com. To learn more about the options we provide, click here and enter your zip code.

Now you’re ready to make the switch and be toasty warm the next time a snowpocalypse hits!

Wood Pellet Stove Best Practices and Troubleshooting

Winter is here, and it’s in full swing. If your wood pellet stove hasn’t been working overtime yet, it’s about to. With frigid days and long, cold nights ahead, ensuring your stove is running safely and efficiently is key to staying warm all season.

Here’s your essential guide to pellet stove best practices and troubleshooting, so you can enjoy maximum heat and minimal hassle this winter.

Read your pellet stove owner’s manual. Every stove is different, so the manual will offer the best advice for your specific model, including proper maintenance to warranty information, many manuals are now available online, so don’t spend too much time searching your drawers for the paper copy. 

Consider scheduling a professional appointment, especially if your stove hasn’t been extensively cleaned recently. A technician can check all stove components to determine whether replacement or adjustment is needed, something a stove owner cannot always determine on their own. Also consider that an improperly kept stove can impact your burn quality and efficiency, which can snowball—pun intended—into other issues down the road.

Clean your stove regularly. While we recommend a professional cleaning once or twice a year, monthly cleanings are also suggested to keep your stove burning at tip-top efficiency. If you have the right tools (a scraper, stiff brush and an ash vacuum with special dust bags), a complete cleaning takes 20-30 minutes. Here are some tips on cleaning your stove quickly and correctly.

Use high-quality wood pellets. This will significantly improve your burn experience.

Check out the specifications on the pellets you’re considering, including ash percentage. Higher quality pellets will have a lower ash percentage and require less maintenance. The higher the ash percentage, the more maintenance is needed.

Check your stove settings. Even when using premium wood pellets, if your stove settings aren’t synced for feed rate, air flow, and heat settings, you’ll sacrifice efficiency and have other potential issues.

The Problem

The Likely Culprit

The Solution

Poor burn quality

Dirty stove

Clean your stove according to your manufacturer’s recommendations.

Blackened glass

Burning on ‘low’

Adjust heat setting to medium or medium/high.

Excessive clinkers

Airflow leak

Clean all vents, check and repair/replace all gaskets, and adjust damper or airflow setting.

Trouble igniting

Air-to-pellet ratio

Adjust air-to-pellet ratio by increasing air flow.

Lazy or small flame

Air-to-pellet ratio

Adjust air-to-pellet ratio by increasing air flow and/or decreasing feed rate.

Low heat output

Air-to-pellet ratio

Adjust air-to-pellet ratio by increasing air flow and/or increasing feed rate.

Sparks flying/ embers in the ash pot

Air-to-pellet ratio

Adjust air-to-pellet ratio by decreasing air flow and/or decreasing feed rate.

Whole, charred pellets left in the burn pot

Air-to-pellet ratio

Adjust air-to-pellet ratio by decreasing air flow and/or decreasing feed rate.

Auger jamming/ stove shutting down

Long pellets

Drop bags on the floor – this can break long pellets into a manageable length.

Excessive ash buildup/ whole, charred pellets in burn pot

Short pellets

Reduce feed rate.

If you’re a Woodpellets.com customer experiencing burn issues, fear not! Our quality-certified fuels are backed by a quality guarantee valid for 30 days after your delivery date. 

Learn more here or call 1-800-PELLETS to speak to an expert!

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