2023 EPA Federal Tax Credit Information

The Inflation Reduction Act, now signed into law, will change the tax credit for wood furnaces as of Jan. 1, 2023.  The credit in 2023 will be 30% with a maximum of $2,000 and can be taken in addition to the $1,200 tax credit for building envelope upgrades and energy audits.  The efficiency qualification remains the same at 75% or more.

In everyday terminology, you get the full $2,000 tax credit on the furnace purchase alone.  You would be eligible for up to an additional $1,200 on expenses associated with your installation (chimney, ducting, hired labor, etc.).

Clickable Links – (IRS FAQs), (Tax Credit Manufacturer Statement), (Consumer Tax Credit Info), (AFGH Info Blog)