Biomass Stoves

• Biomass stoves are appliances that burn biomass fuel such as wood, crops, trees, grass and plant waste to create heat. According to ENERGY STAR, consumers who buy biomass stoves are eligible for a tax credit of up to $300 in 2011. Tax credits directly reduce the amount of tax you owe on a tax return, so a $300 credit amounts to $300 in tax savings. Stoves must be installed in an existing home that is the principle residence of the owner to qualify for the credit.
  
  

Tax Credit Limitations

• ENERGY STAR states that only certain ENERGY STAR-qualified products qualify for a tax credits because energy efficiency makes up the difference in cost between efficient models and standard models for many types of appliances in a reasonable amount of time without a tax credit. The following types of appliances are examples of those which are not covered by federal tax credits for energy efficiency: clothes washing machines, dishwashers, ovens, ranges, refrigerators and room air conditioners.
  
  

Washing Machines

• While energy-efficient washing machines are not eligible for federal tax credits, they may be eligible for rebates, tax credits or tax exemptions due to state-run rebate programs or special offers run by certain ENERGY STAR partners. ENERGY STAR offers a web-based search tool that lets users search for deals based on zip code and appliance type, which includes clothes washers and dishwashers.
  
  

Considerations

• The tax credits for energy efficiency were created, in part, to help stimulate the economy in response to the recession that began in the late 2000s. In 2010, biomass stoves were eligible for a credit of 30 percent of the purchase price of the stove up to a maximum of $1,500. According to ENERGY STAR, the $300 tax credit for biomass stoves discussed in Section 1 is set to expire on Dec. 31, 2011.