EcoSmart Fires Now Qualify for Federal Tax Credits for Energy Efficiency
Receive up to 30% or $1,500 in Tax Credits for the purchase of any EcoSmart Fire
On February 17, 2009, President Obama signed into law a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made significant changes to the Tax Credits available for purchase of Nonbusiness Energy Property. These changes affect consumers purchasing EcoSmart Fire in the most positive of ways.
These amendments to the Internal Revenue Code have qualified consumers purchasing any EcoSmart Fire product for a tax credit of up to $1,500 or 30% of their purchase price.
Qualification requires meeting various rules and limitations detailed below. EcoSmart Fire recommends that you consult your tax advisor for details specifically relating to your individual circumstances.
Why Do EcoSmart Fire Products Qualify?
One type of Qualified Energy Property is defined in Internal Revenue Code Section 25C(d)(3)(E) as the following:
a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent, as measured using a lower heating value
Biomass fuel is detailed in Section 25C(d)(6) as:
The term "biomass fuel" means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.
All EcoSmart Fire products burn Denatured Ethanol (Alcohol) which complies with the above definition of a "Biomass Fuel". All products from EcoSmart Fire have a minimum thermal efficiency of 90% which exceeds the requirements for energy efficiency detailed in the code. Independent testing information will be made available if required to confirm the thermal efficiency data.
Details & Conditions
- The EcoSmart Fire must be first "placed in service" between January 1, 2009 and December 31, 2010
- The EcoSmart Fire must be installed in a dwelling unit owned and used by the taxpayer as his principal residence in the United States of America
- The maximum Tax Credit for Nonbusiness Energy Property is $1,500
- For record keeping, receipts of purchase must be saved along with a copy of the Manufacturer Certification Statement.
- Amounts paid or incurred in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010
The credit referred to is provided under the terms of Internal Revenue Code Section 25C(d)(3)(E)
Tax Credits: Frequently Asked Questions
How do I receive my tax credit?
Amounts paid or incurred in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010. Be sure to retain your record of purchase (receipt) and a copy of EcoSmart Fire's Manufacturers Certification Statement for your records. However, these documents need not be submitted with your tax return.
What if my designer purchases the product on my behalf as part of their services?
You require an itemized record of purchase from your supplier noting the EcoSmart Fire model number and price to be eligible for the Tax Credits. At times, it may be valuable to have your supplier provide you with a separate record of purchase for the EcoSmart Fire to ensure documents may be filed accordingly.
Why is Denatured Ethanol or Alcohol considered a "biomass fuel"?
Denatured Ethanol is a plant derived fuel, made from readily available renewable crop resources and as such meets the requirements as a qualifying fuel stipulated in the code.
What if I purchase a second hand or used EcoSmart Fire?
No credit will be allowed in that case. The credit only applies to the purchase of new equipment, where the taxpayer is the original user.
I purchased my EcoSmart Fire prior to President Obama's announcement. Am I eligible to receive a tax credit?
Any purchase made and placed in service between 1 January 2009 and 31 December 2010, will qualify.
Where may I view a copy of the applicable code?
Copies of relevant parts of the Internal Revenue Code are available for download here, or from the IRS Website. Your tax advisor may also be in a position to provide you with a copy.
As a developer, are residents purchasing one of my properties that have an installed EcoSmart Fire eligible to claim a tax credit?
For residents to be eligible to apply for the tax credit, a record of purchase of the EcoSmart Fire is required. This may be in the form of an itemized statement or in the form of a receipt. Regardless, a unique record of purchase is required to be supplied from you, the developer, for your customer to qualify. If this is provided, residents will be eligible to apply for the Tax Credits.
What if I buy multiple units or other have other qualifying expenditures?
The applicable credit allows for a maximum credit of 30% up to $1,500 across all purchases of qualifying products.
What does "placed in service" mean?
"Placed in service" is defined by the IRS as when the property is ready and available for use.
I have lost my receipt of purchase. How do I obtain a replacement?
You require a record of purchase to apply for your tax credit. In the event you have misplaced your record, please contact the location where your purchase was made to request a receipt of purchase.
For specific details concerning your unique tax position it is recommended that you consult with your tax advisor.
Burner Kits The core of all EcoSmart fireplaces, offering the ultimate in design flexibility
Designer Range Freestanding, portable pieces of fire furniture
Renovator Range Stainless steel wall mounted fireplaces ready for installation
Grate Range Simple, traditional fireplace grates
Outdoor Range Portable, weather-resistant fireplaces ideal for outdoor environments
Fireplace Accessories Firescreens, Extinguishers, Lighters, Stones, etc