Tax Credit FAQs
Q: What is a federal consumer tax credit?
A: The American Recovery and Reinvestment Act of 2009 includes a credit of 30%
(up to $1500) for the purchase of a 75% efficient biomass burning stove. Consumers may claim the credit on their federal income tax form at the end of the year.
The credit then increases the tax refund or decreases the amount the taxpayer has to pay.
Note: With regard to tax credits vs. tax deductions, in general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay,
dollar-for-dollar. Tax deductions - such as those for home mortgages and charitable giving - lower your taxable income.
Q: When does this tax credit go into effect and how long will it last?
A: The tax credit goes into effect January 1, 2009 and is valid only for the purchase
of a qualifying biomass-burning stove in 2009 and 2010. The sales receipt must indicate that the purchase was made between January 1, 2009 and
December 31, 2010. If a retailer sells a stove before the list of qualifying stoves
is made public, the retailer must keep a complete record of the sale (name and full contact information) so the purchaser can be notified.
Please consult your tax advisor to find out how this measure applies
to your particular circumstances.
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