As part of the economic stimulus plan, the federal government is offering a new tax credit on many energy-efficient products. This tax credit is good for 30% of the purchase price on qualifying products, up to $1500. For example, if you bought a $4,000 energy efficient fireplace, you would qualify for a tax credit of $1,200. Since this is a tax credit, not a deduction, you would be able to subtract $1,200 directly off your final tax bill.
Wondering which products qualify? The U.S. Department of Energy has laid out general guidelines for which sorts of products qualify. If you have a question about whether or not a specific product qualifies, check out the manufacturer’s website for more information. Most manufacturers of qualifying products have advertised that fact on their websites, along with a Manufacturer’s Certification Statement. This document usually lists all of a manufacturer’s qualifying products, along with a signed statement saying that the manufacturer certifies, to the best of his knowledge, that the qualifying products meet the requirements of the tax credit.
When filing your taxes, you will need to claim this credit using IRS Form 5695. Once you’ve calculated the amount of your Residential Energy Tax Credit, enter that number on line 52 of your IRS Form 1040. You do not need to attach a copy of your receipt or the Manufacturer’s Certification Statement with your 5695 Form. However, saving these two documents for your records is a good idea, and will help you to complete the 5695.
FastFireplaces.com has just introduced the EcoSmart line of designer fireplaces, most of which qualify for the new tax credit. These fireplaces are fueled by denatured ethanol, which is a biomass fuel under the definition in the tax code. In addition, all qualifying EcoSmart fireboxes have a thermal efficiency rating of more than 90%. This means that most EcoSmart fireplaces meet the requirements for a “biomass stove”, one of the categories of products that qualify for the tax credit. FastFireplaces.com is currently the only online retailer of EcoSmart products. We carry their full line of designer ranges and accessories, so come check us out and save 30% on these energy-efficient fireplaces.
~Your friends at FastFireplaces.com