As part of a pandemic relief package that was signed into law at the very end of December 2020, included a tax credit for wood and pellet heaters. Wood and Pellet stoves now qualify for a renewable energy investment credit.
Consumers who purchase highly efficient wood or pellet stoves will be able to claim a 26% tax credit that is uncapped and based on the full cost (purchase and installation) of the unit. This credit is 26% through 2021 and 2022. It will be 22% in 2023.
See more information at the HPBA’s website regarding this tax credit.
See the EPA’s website for a list of qualifying wood and pellet heaters (It must be listed at least 75% efficient per the higher heating value of the fuel.)