Federal Tax Credits up to 1,500

On February 17, 2009 President Obama signed into law, H.R. 1, the American Recovery and Reinvestment Act (ARRA). Section 25C (Title 26 > Subtitle I > Chapter A > Subchapter A > Part IV > Subpart A of US Internal Revenue Code) states that a 30% Tax Credit of up to $1500 may be issued for biomass-burning, home heating stoves purchased and installed for residential use during 2009 and 2010. The guidelines specify that all biomass-burning stoves must be at least 75% efficient using the Lower Heat Value (LHV) method of testing.

About pellet burning fireplaces, stoves and inserts

Pellet appliances have high combustion levels and great heating efficiencies. They are easy to operate with built-in fuel hoppers and feeding devices that move pellets in small groups to the combustion chamber. The various Quadra-Fire and Harman models have control panels or wall-mounted thermostats to control heat and minimize fuel consumption.

Pellets burn cleaner than virtually any other biomass fuel and produce low particulate matter, helping to reduce air pollution. They are made from compacted sawdust, wood chips, bark, agricultural crop waste, waste paper and other organic materials. Burning pellets is a constructive way to reuse material that may otherwise go to a landfill. Wood pellets are typically purchased in 40-pound bags for between $5 and $7, providing up to 24 hours of steady heat.