HOW DO I QUALIFY FOR THIS FEDERAL TAX CREDIT?
This 1st step to taking advantage of this great tax saving opportunity is to purchase a highly efficient product from Kuma's LE-1 line of wood heaters. All of these products are 78% efficient and qualify for the tax credit. The next step is to claim the credit on your federal income tax return. If you use tax software, you will enter the credit in the "residential energy credit" or "alternative energy credit" section. If you file by mail, use IRS for 5695 and look for the line refering to biomass stoves.
HOW MUCH WILL THIS SAVE ME ON MY TAXES?
Let's say that your installation of a high efficiency Kuma wood stove cost about $7,000. This might include some chimney pipe, installation labor and a hearth in addition to the wood stove. 30% of this project cost is $2,100. Because the credit is capped at $2,000 you will be able to receive a credit of $2,000 when you file your federal taxes at the end of the year. When you enter this credit, your taxes owed will be reduced by $2,000. This is much better than a simple tax deduction which might only save you a few hundred dollars. You will need to have paid some taxes to qualify for the credit. Some credits are refundable meaning that even if you did not pay any taxes you can still get a credit... this is not that kind of credit. The great news is that if you did not use all of the credit this year then you can carry any remaining credit forward to use next year.
SAVINGS BEYOND THE TAX CREDIT
The hybrid technology in a Kuma LE-1 wood stove will not only qualify for this tax credit but you will reap the benefits of a stove that produces more heat using less wood. Over the life of a stove (let's say 15 years for example) Investing in Kuma's efficient Hybrid Technology would save you nearly $2,000 in fuel costs, which is equal to 23,000 lbs of wood that you do not need to chop, stack and haul into the house.
FINANCIALLY AND ENVIRONMENTALLY SMART
Wood burning is not only a renewable fuel source, it also has a positive environmental impact. As trees grow, they absorb carbon dioxide (CO2) as they use energy from the sun. When a tree decomposes or is burned, the carbon that is stored in the tree is released back into the air. Using Kuma wood burning products will use produce no more carbon dioxide into the atmosphere than a tree rotting on the forest floor, making it carbon neutral. Additionally, all Kuma stoves emit on average 15 times less particulate matter into the air than older, non-certified stoves.
WHAT DOCUMENTS DO I NEED TO SAVE?
You need to save your sales receipt showing the money that you spent on the wood stove project. Additionally you shoud keep a copy of Kuma's Certificate of Efficiency. Keep these documents with your other tax forms.
