|
Residential Energy Tax Credits (RETC)
Program Overview
The state of Oregon,
through a program called the Residential Energy Tax Credit
(RETC) now allows tax credits for purchase of new wood and
pellet stoves that meet the definition of "very Efficient
Biomass Combustion Devices.
The tax credit is up to $300
maximum*.
Information about the
Program
•Letter from Ore. Dept of Energy (DOE)
outlines the requirements:
Click HERE
for the letter.
•Letter from DOE addressing problems with
the tax credit application process should be reviewed by all
hearth retailers.
Click
HERE for the letter. Most problems with the tax credit
applications relate to incomplete information about the stove
model (to prove it meets the requirements) or insufficient
documentation of the outside air requirement.
The entire rules document
can be found on the Internet at:
www.oregon.gov/ENERGY/CONS/RES/tax/docs/RETC_Rule_summary.pdf
Consumer Application
for Tax Credit
For a copy of the DOE's official "Application
and Verification Form" for consumers
click HERE.
List of Qualifying
Appliances
Wood stoves that
qualify are 4.5 grams per hour or 2.5 grams per hour for
catalytic wood stoves.
Click HERE for a copy of
the official list.
Pellet Stoves that
qualify are 2.5 grams per hour or less.
Click HERE for a copy of
the latest list of qualifying pellet stoves. The list is still
in development. The reason the list is not complete yet is the
Oregon Dept. of Energy used the EPA list of certified woodstoves as it's source
information, but the vast majority of pellet stoves are not on
the EPA list because they are exempt. So, pellet stoves are being
added to the list as manufacturers send in their third part test
data.
OHPBA, in partnership with the
Oregon Dept. of Energy, is building these lists. The lists
include only the
wood and pellet stoves that qualify for the tax credit. The
abbreviated lists should be much easier for consumers to
research stoves that qualify for the tax credit.
Information for
Stove Manufacturers
Since pellet stoves that
are not already EPA certified need to be added to the list
(if they meet the criteria) manufacturers should
review how to get the stoves on the list. Also, it is
possible that recently tested wood stoves may not be on the
EPA's list yet. If you are a manufacturer,
Click HERE for
a letter describing the process and forms to complete to send to
OHPBA. In order to be on the list
official records must come from an EPA Certified lab.
Qualifications for the
Tax Credit
“Very efficient biomass combustion devices” that qualify
include EPA certified woodstoves and pellet stoves with the
following criteria:
1. Woodstoves must be on the EPA list and have emissions that
meet the Washington state Standards: 4.5 for non catalytic, 2.5
for catalytic.
2. Woodstoves must have a dedicated outside air intake system.
The rules state a directly attached system is preferred, but it
allows for a barometric pressure wall unit as long as it
is that is near the stove. This is a good solution for
qualifying wood or pellet inserts.
3. Must be for residential heating (less than one quarter
million Btu per hour).
4. Pellet stove emissions must be 2.5 grams per hour or less.
Click HERE for the latest list of
qualifying pellet stoves.
5. Outdoor wood or pellet hydronic heaters, wood boilers, and
masonry heaters do not qualify unless they have a certificate
from an independent lab.
*The tax credit
formula is based on an estimate for the first year of operation
as a kilowatt hour equivalent. The tax credit is equal to the
first year energy yield in kilowatt hours multiplied by $0.40 up
to $300; or 25% of the net cost of the device whichever is less.
Since most stoves are going to cost more than $1200, the 25%
calculation is unlikely to apply.
Bio Fuels Tax Credit
•The tax credit applies to companies and people who collect and
consume bio fuels such as bio diesel, bio home heating oil, and
biomass, such as cord wood and pellets in the case of home
heating.
•Rules take effect December 14 and are intended for calendar
year starting January 1, 2008.
•The entire list of rules for Bio Fuels tax credit can be found
at:
www.oregon.gov/ENERGY/RENEW/docs/330-150Draft.pdf
•The credit is $10 per bone dry ton of pellets or $10 per cord
of wood.
•The credit is for fuel burned (not bought) regardless of the
source. In other words, if you burn cordwood that came from a
tree that fell in your backyard, that qualifies. There will be
more detail on type of wood that qualifies once the rules are
out.
•The credit only applies if a pellet stove is used or a
woodstove on the list of EPA certified wood stoves.
•BUT… the rules have not been posted yet. There may be
additional qualifying language or restrictions. So, stay tuned.
|
