Some important points of the tax credit are:

• To be considered, a stove must use the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and have a thermal efficiency rating of at least 75% as measured using a lower heating value.

• Installation is covered, as long as it is a requirement for the stove’s proper and safe functioning.

• This consumer tax credit is 30% (up to $1500) for the purchase and installation of a 75% efficient stove or other qualifying energy efficient products and is available in both 2009 and 2010. The $1500 credit is a cumulative total over the two year period. In other words, the available credit is $1500 TOTAL, not $1500 for each year.

• The tax credit is an aggregate, i.e., the total $1500 can include other energy efficient items. For instance, if a consumer claims $900 on a new stove, then he will have $600 to purchase additional energy saving products that will qualify for the credit in 2009-2010.

• This credit applies only to existing principle residences.

• Manufacturers must provide a certificate of qualification for each product.

• Taxpayers must retain the certification statement for tax recordkeeping purposes, but the certification is not required to be attached to the tax return.

• Purchases made between January 1, 2009, and June 1, 2009 are covered if the manufacturer offers a certificate of qualification for the product.

• If a manufacturer has documentation that a stove has already achieved the required efficiency rating, no further testing is required.

The IRS has not stated whether or not inserts are covered, but “based on EPA’s practice of treating inserts and freestanding biomass stoves in a similar fashion, manufacturers may choose to include inserts,” HPBA said.