February 4, 2021
Kate Forrer

New Federal Tax Credit for High-Efficiency Wood Heaters

As of January 1, 2021, residential wood heaters (stoves, furnaces, and boilers – all wood fuel types) with at least a 75% efficiency rating are eligible for a 26% Federal tax credit. The tax credit and all the rebates listed below *can* be combined.

EPA Certified Stoves:

$500 point-of-purchase rebate through Efficiency Vermont, plus an additional $100 if you are turning in an older model.
$250 rebate for Washington Electric Coop members.
$150 bill credit for Vermont Electric Coop members (pellet only).
$150 rebate for Stowe Electric members (pellet only).

Note: If you purchased an eligible new stove in 2020, you are still eligible for a $300 Federal tax credit. That has been replaced in 2021 by the 26% version.

Pellet Boilers/Furnaces:

$3,000 from Efficiency Vermont
$3,000 from the Clean Energy Development Fund (CEDF) (accessed via Efficiency Vermont)
$1,000/$500 for Washington Electric Coop members for boilers/furnaces

If you are currently heating with coal, there has never been a better time to make the switch. You can combine the tax credit and the above rebates with an additional special coal changeout adder from the CEDF of up to $7000 for residential projects.

View the full list here. Questions? Email Emma.Hanson@vermont.gov