Good news for those who are thinking of replacing their older wood or pellet heaters, stoves, or fireplaces in Southern California!
It’s no secret that older wood and pellet heaters, stoves and fireplaces are of much lower efficiency than newer zero-clearance models. Southern Californians are increasingly aware of the negative impacts these older appliances and fireplace systems have on the environment.
In fact, these are now widely known to be a contributing cause of poor air quality – both outdoors and indoors – and people living in areas such as Los Angeles that are already under higher smog risks than other areas in the state and country are more and more eager to do something about it.
The main challenge many home and apartment building owners encounter when contemplating the possibility of installing a more modern, clean-burning and efficient heating or fireplace appliance is the cost. If you’ve already done some research on this , you may have realized that changing older systems for new ones isn’t cheap.
However we are happy to bring you the good news! There have been recent improvements and updates to prolong ongoing incentives and tax breaks for those who wish to go forward with this wise investment – As it is good for our environment and will also end up saving you a lot of money in the long term.
It is likely that not everyone knows about existing programs launched by local and federal government agencies and industry partners to encourage Americans in making the change for their health and the greater good. Therefore, we are delighted to inform you about the ongoing Wood and Pellet Heater Investment Tax Credit (ITC) and Woodstove Changeout programs!
New Biomass Tax Credit Updates Beginning in 2023
Otherwise known as Wood and Pellet Heater ITC, this initiative granted an uncapped 26 percent tax credit on the purchase and installation costs of qualifying appliances between January 1st 2021 and December 31st 2022. But if you did not make it into this 2 year term, the good news is the HBPA advocacy on a 10 year prolongation of the program came through!
Beginning January 1st 2023 all the way through December 31st 2032, anyone purchasing high-efficiency wood or pellet stoves or larger residential biomass heating systems may be eligible to claim a 30 percent tax credit – capped at $2,000 annually – based on the full cost of the unit (which includes purchase and installation).
The criteria for qualifying products remain the same, such that an appliance must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel.
You can consult the EPA-Certified Wood Stove Database to know which appliances qualify, but one can also request a manufacturer certification statement attesting that a product qualifies.
We recommend you consult this list of frequently asked questions for further detailed information on everything from qualifying products, covered costs, paperwork, and more on the former and new updated Biomass Tax Credit.
Benefit from your local Woodstove and Fireplace Changeout
Unlike the program described above, which is a federal one applied nationwide, this changeout and incentive program is initiated by a partnership including the Heat Patio & Barbecue Association (HPBA), the U.S. Environmental Protection Agency (EPA), local governments and industry partners. It is not applied all over the US, but you can see the areas where the program is available, and the benefits vary among different areas.
Since we service the greater Los Angeles Area, the area in which a program is available and that concerns many of our clients covers a widespread zone that includes Santa Clarita, the city of Los Angeles, Long Beach, Anaheim, spanning beyond San Bernardino and all the way down to Temecula. This large area is under the South Coast Air Quality Management District Woodstove and Fireplace Changeout, and offers $100 to $1,600 depending on the appliance. This is currently an ongoing program, check out the website for up to date information regarding exact ZIP codes, frequently asked questions, participating retailers, voucher applications, and more.
Unfortunately our clients in Oxnard and Ventura do not currently have a program in their area, but we invite them to contact the HBPA to let them know a program would be needed and appreciated by your community. While they are not program administrators for changeout programs, they can advocate for areas that make their needs known.
Let us help you make the change
As we have been serving SoCal communities for over 50 years, there is nobody prouder and more fit to help you make your home more energy efficient and our neighborhoods thrive in a cleaner and healthier environment through our fireplace and chimney expertise. Get in touch with our team if you’re looking to make the switch to a new high efficiency fireplace appliance, our sales and installation specialists will walk you through every step to ensure quality assurance and optimal results.
