Tax Credit FAQs
Q: What is a federal consumer tax credit?
A: Consumers 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 went into effect January 1, 2009 and is valid only for the purchase of a qualifying biomass-burning stove in 2009 and/or 2010. The sales receipt must indicate that the purchase was made between January 1, 2009 and December 31, 2010.
Q: Who determined the tax credit guidelines for the qualifying units?
A: The Department of the Treasury and, specifically, the Internal Revenue Service (IRS).
Q: How will a consumer know that a product is certified?
A: The manufacturer will have to certify that its product meets or exceeds the IRS efficiency requirements. A manufacturer's certification is a signed statement from the manufacturer certifying that the product qualifies for the tax credit. You can get a manufacturer's certification here or ask your Security Chimneys dealer for a copy of the certificate upon purchase. Taxpayers must keep a copy of a certification statement for their records, but do not have to submit a copy with their tax return.