RACINE — There is really nothing like a fire in fall and winter, not only for the warmth it provides, but also for the value it adds to the home.
There are many advantages to adding or replacing a wood or pellet burning stove — including a new financial advantage.
Congress enacted the Wood and Pellet ITC at the end of 2020, which created the new tax credit under Section 25(D) of the Internal Revenue Code.
There are a few things to know about this credit.
The credit covers 26% of the purchase and installation of a new or replacement, qualifying wood or pellet stove in 2021 and 2022. The credit drops to 22% in 2023.
It is important, however, to buy a qualifying wood or pellet stove that has an efficiency of at least 75% per the higher heating value (HHV) of the fuel.
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The tax credit can only be claimed on the tax return in the year the product was installed.
Why right now?
For those thinking of adding a highly efficient wood or pellet stove to their home, or replacing one, now is the time to act. Literally.
Ken Doubek of The Alaskan Fireplace Company in Sturtevant said: “If you want it this fall, you have to get on it now because if you start in fall, you won’t see it that winter.”
He explained there are multiple factors that make now the time to act.
The first issue is there are a limited amount of products that will qualify — from the efficiency standpoint — so people wanting a new wood or pellet stove in their homes are all going to be after the same kind of stoves.
Secondly, the hearth industry is backlogged and that will only increase once word really gets out about the tax credit, he added.
Doubek said some products have an 85 day lead time. In the past, the wait might be 21 days at most.
Why the backlog?
There are two primary factors causing the backlog.
The first is supply chain shortages. When COVID shut everything down, hearth manufacturers would normally be stocking up for the fall.
Meanwhile, people were stuck at home with cash they weren’t spending on travel or transportation.
What did they do? They began home improvement projects — and one of those improvements was to their fireplaces or freestanding stoves.
And then Congress passed the tax credit.
That is why Doubek advised people looking to add stoves to their homes not to wait.
Alaskan Fireplace
Ken and Jeanine Doubek started Alaskan Fireplace in 1992 and moved to their current location at 9820 Durand Ave., Sturtevant, in 1997.
Those wondering what kind of a wood or pellet stove to buy in order to take advantage of the tax credit, can visit with Ken Doubek and the staff at Alaskan Fireplace, who will be able to assist with that solution.
