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How To Qualify for the USA Energy Tax Credit

25C Woodstove Tax Credit for 2023 – 2032

 

With the start of the New Year, industry has a new tax credit to enjoy for the next 10 years. Put in place through last year’s Inflation Reduction Act (IRA), qualifying wood-burning appliances (biomass stoves and biomass boilers) are now eligible for a 30% tax credit (including purchase, installation, and labor costs). The IRA moved our credit from Section 25D of the tax code to Section 25C, also known as the Energy Efficient Home Improvement Credit.

Key features dealers and consumers need to know include:

  • Qualifying appliances must have a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel).
  • Capped at $2,000 per year – there is no carryover provision from year to year, but the $2,000 limit does reset each year.
  • Non-refundable tax credit – this means you can have your tax liability reduced to $0, but the credit will not generate or increase a tax refund.
  • Appliances are paired with heat pumps – if purchasing a qualifying heat pump or water pump and a qualifying wood heater in the same year, the maximum credit between the two purchases is $2,000 aggregate.
  • May be used for primary or secondary property that you actually live in – may not be used for a rental property (although a renter could claim the credit for a property in which they live).
  • Claimable in the year the property is installed – when purchasing in one year and installing in another, the credit falls in the tax year the installation is completed.

HPBA has an FAQ and one-pager for the 25C tax credit. The IRS has also recently updated its tax credit FAQs. For questions on the tax credit, please contact Ryan Carroll or John Crouch.

 

If Purchased in 2022

What is this tax credit?

  • Effective Dates: The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is in effect from January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2022.
  • Credit Amount: 26% of the purchase and installation costs (including venting, blower, ash pan, trim kits, hearth pad, and labor),  for 2021 and 2022 (with no cap or lifetime limit) under Sec. 25D of the U.S. tax code. Tax credit can add up to $2,000 or more!
  • Qualifying Products: Any biomass-fueled heater (wood stove, wood insert, pellet stove or pellet insert) and is 75 percent efficient per the higher heating value (HHV) of the fuel.
  • Any product ordered in 2021 that qualifies for the new Sec. 25(D) credit, but isn’t installed and paid for until 2022, can be claimed under the Sec. 25(D) credit on a 2022 tax return. 
  • The credit must be claimed on the tax return year in which the purchase of the product is complete.

 

If Purchased in 2023-2032

What is this tax credit?

  • Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is in effect from January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
  • Credit Amount: Creates a new tax credit of 30% (capped at $2000.00) of the purchase and installation costs (including venting, blower, ash pan, trim kits, hearth pad, and labor) for 2023 through 2032 (with no lifetime limit) under Sec. 25C of the U.S. tax code. Tax credit can add up to $2,000!
  • Qualifying Products: Any biomass-fueled heater (wood stove, wood insert, pellet stove or pellet insert) and is 75 percent efficient per the higher heating value (HHV) of the fuel.
  • The credit must be claimed on the tax return year in which the purchase of the product is complete.

The credit must be claimed on the tax return year in which the purchase of the product is complete.

 

What models currently qualify?

Please contact us for current models that qualify.

 

How to Claim

  • You will claim your credit when you file your federal income tax return
  • Online/Software: Enter it into the Home Ownership & Residential Energy Credit section
  • By Mail: Include the Lopi Tax Credit Certificate and Residential Energy Credit Form 5695.

 

We will continue to update this page with additional information and new materials as we learn more. 

COLD WEATHER = STANDING PILOT

 

COLD WEATHER = STANDING PILOT


This is just a reminder that during these cold winter months we recommend running our gas appliances in standing pilot, or "continuous pilot", mode.

What are the benefits of continuous pilot mode in the heart of winter?


• Continuous draft is established for smooth startup
• Glass remains warm; this eliminates cold air transfer into the home
• Reduced glass condensation = reduced glass cleaning = reduced maintenance

 

Firefly Lodge in Merrill, Wisconsin serves customers throughout North Central Wisconsin to keep their homes warm in the winter.  From Wausau to Mosinee, Stettin, Tomahawk and north Firefly Lodge has what you need to keep you warm in the winter months.  Contact Us to Today to find out how we can help.

GREENSMART System

Multi-Function Wireless Thermostat Remote Control

 

All of our Deluxe Premium Gas Fireplaces and Inserts feature the patented GreenSmart® System. This proprietary system is the most innovative collection of components, controls and technology that when combined provides an elegant, greener and smarter way to heat your home.

GreenSmart® Deluxe Multi-Function Wireless Thermostat Remote Control
(Optional with the 864 TSV See-Thru Gas Fireplace)

  • Two Thermostat Modes
  • Flame Adjustment (6 levels)
  • Change Between GreenSmart® and CPI Pilot Modes
  • Fan Operation (6 levels)
  • Comfort Control™ (Controls rear burner)
  • Accent Lights (6 levels)

Thermostat Setting
Fireplace or insert turns ON or OFF to maintain your desired home/room temperature.

Manual Setting
ON/OFF, Fire and Fan stay where you manually set it.

Smart Thermostat Setting
“Smart Thermostat Mode” automatically adjusts the flame height based on the temperature setting, so the flame will modulate up/down as opposed to shutting OFF/ON like normal thermostats. This setting conserves fuel and maximizes the fireplace or inserts heating ability while extending the viewing pleasure of the fire.

 

Flame Adjustment
Adjust the height/heat of the flame. 6 levels of flame heights to choose from.

 

Convection Fans
Circulate room air around the firebox and deliver heated air into your home. 6 speeds to choose from.

 

Comfort Control
Comfort Control turns off the rear burner while leaving the front burner on for an attractive flame when heat output is not the priority. This feature offers a turndown ratio of up to 75 percent and offers a more efficient way to heat your home by only burning the correct amount of fuel to keep a constant room temperature.

(This feature is not available on the 4237 Gas Fireplace)

 

 

Choice of Pilot Modes
Easily Switch Between Pilot Modes

GreenSmart Mode:
Use in summer or milder heating days to reduce gas consumption from the Pilot.

CPI – Continuous Pilot Mode:
Keeps the Pilot on at all times. This warms the vent system to maintain a strong draft in your chimney and reduce moisture condensation on the glass. Used in Fall/Winter or in cold climate areas. The GreenSmart® system includes a battery back-up, ensuring proper ignition even during power outages.

 

Accent Lights
Accent Lights are a standard feature in all Deluxe fireplaces and inserts. This feature adds a warm glow to both the logs and fireplace interior, and can be used when the fire is on or off. Perfect as a nightlight or soft indirect light for the room, the Accent Lights allow for visual enhancement of your fireplace or insert 365 days a year. 6 levels to choose from.

 

 

Accent Lights Off                                            Accent Lights On

 

Firefly Lodge in Merrill, Wisconsin serves customers throughout North Central Wisconsin to keep their homes warm in the winter.  From Wausau to Mosinee, Stettin and north Firefly Lodge has what you need to keep you warm in the winter months.  Contact Us to Today to find out how we can help.

How To Qualify for the USA Energy Tax Credit

 

 

If Purchased in 2022
What is this tax credit?

  • Effective Dates: The new tax credit under Sec. 25(D) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is in effect from January 1, 2021 for qualifying purchases and installations completed on or after that date, through December 31, 2022.
  • Credit Amount: 26% of the purchase and installation costs (including venting, blower, ash pan, trim kits, hearth pad, and labor),  for 2021 and 2022 (with no cap or lifetime limit) under Sec. 25D of the U.S. tax code. Tax credit can add up to $2,000 or more!
  • Qualifying Products: Any biomass-fueled heater (wood stove, wood insert, pellet stove or pellet insert) and is 75 percent efficient per the higher heating value (HHV) of the fuel.
  • Any product ordered in 2021 that qualifies for the new Sec. 25(D) credit, but isn’t installed and paid for until 2022, can be claimed under the Sec. 25(D) credit on a 2022 tax return. 
  • The credit must be claimed on the tax return year in which the purchase of the product and installation is complete.

 

If Purchased in 2023-2032
What is this tax credit?

  • Effective Dates: The new tax credit under Sec. 25(C) of the U.S. Internal Revenue Code (“IRC” or “tax code”) is in effect from January 1, 2023 for qualifying purchases and installations completed on or after that date, through December 31, 2032.
  • Credit Amount: Creates a new tax credit of 30% (capped at $2000.00) of the purchase and installation costs (including venting, blower, ash pan, trim kits, hearth pad, and labor) for 2023 through 2032 (with no lifetime limit) under Sec. 25C of the U.S. tax code.  Tax credit can add up to $2,000!
  • Qualifying Products: Any biomass-fueled heater (wood stove, wood insert, pellet stove or pellet insert) and is 75 percent efficient per the higher heating value (HHV) of the fuel.
  • The credit must be claimed on the tax return year in which the purchase of the product and installation is complete.

 

*Please consult with your Tax Advisor to confirm your eligibility for this Tax Credit.

 

How to Claim

  • You will claim your credit when you file your federal income tax return
  • Online/Software: Enter it into the Home Ownership & Residential Energy Credit section
  • By Mail: Include the Lopi Tax Credit Certificate and Residential Energy Credit Form 5695.

 

Questions? Contact us today and we will be happy to assist you.

Did you know you can cook on your wood stove?

One of the great features of a wood stove is the cooktop surface. Not only will your wood stove heat your home – even during power outages, but it also gives you a wonderful cooking surface to prepare food. All our Lopi Steel Wood Stoves offer excellent cooking surfaces but the Lopi Endeavor and Liberty step-top design are unique in the fact that that they offer both a cooktop and a warming surface. Here are some pro tips for making cooking on your wood stove enjoyable and successful.

High Heat Cookware is essential, a good tip is if you can put it in your oven it is safe for your stove top. We highly recommend cast iron cookware: pans for frying and sautéing and dutch ovens for soups, stews and roasts. Think about adding a grilling basket if you want to adventure into cooking inside your stove. Don’t forget about oven mitts or wood stove friendly gloves!

Keep a Lid on it! Your pots and pans are lonely and can use a nicely fitting lid. A good lid will expand the range of foods you can cook and the speed at which they cook. Think cinnamon rolls, achieving the perfect crusty dutch oven breads, and all your favorite casseroles. Added bonus – they’ll help to keep your wood stove clean and free from grease.

Elevate Your Cooking – Keep your pots and pans off of direct contact with a trivet so you do not burn your food or scratch the surface of your stove. The upper surface of your step top is ideal for warming. Since it is protected by the convection chamber, temperatures will not get a hot. This surface is idea for warming soup, making coca for the kids and for mulling spices to add to the atmosphere of your home.

A Magnetic Stove Thermometer is excellent at achieving familiarity with your stove surfaces and the variety of temperatures they can reach. If you want to go pro you can use and infrared hand held temperature gun to determine the exact temperature in any area, plus you look really cool using it.

 

 

Fireplace and Stove Safety

Fireplace and Stove Safety

Your safety is our number one concern. All Stoves and Fireplaces models are very safe to own and operate in your home.

If you have young children or pets in your home, consider installing a fire screen. Make sure the fire screen is tall enough and placed far enough away so that reaching arms can’t touch the surface of the hot glass on the fireplace or insert. This will allow everyone in your home to safely enjoy the comfort and warmth of your stove or fireplace.