Heat Smart, Save Big: 2025 Biomass Tax Credit Guide

It may be summer now, but colder months have a way of sneaking up on us. That makes this the ideal time to start thinking ahead—especially when it comes to your home’s heating system. If you’re considering a more efficient and eco-friendly option, now’s the time to explore alternative fuel solutions and take advantage of the biomass tax credit while it’s still available.

What Is the Biomass Tax Credit?

The biomass tax credit is a federal incentive designed to encourage homeowners to invest in cleaner, more efficient heating solutions—specifically, wood- and pellet-burning stoves and inserts. It’s part of a broader effort to reduce carbon emissions and promote renewable energy.

Here’s what it covers:

• 30% of the total cost, including installation and service
• Up to $2,000 in potential savings per household

To qualify, units must meet certain efficiency standards, and not all stoves or inserts are eligible. That’s where AES Hearth & Patio comes in—we can help you choose from a range of EPA-certified, tax credit-eligible models from premium brands.

The Hearth, Patio & Barbecue Association (HPBA) is a great resource if you want to dig into the technical side of eligibility, but our team is always here to walk you through it.

Qualifying Products: Wood and Pellet Heating Solutions

Not sure where to start? First, it helps to know the difference between wood-burning and pellet-burning units:

• Wood-burning stoves and inserts offer a traditional feel with real logs and the cozy ambiance of an open flame.
• Pellet stoves and inserts use compressed wood pellets and often feature automatic feeding systems, making them easier to maintain.

Both types come in freestanding or insert models and can qualify for the biomass tax credit, as long as they meet efficiency requirements. At AES Hearth & Patio, we carry a full range of eligible products from trusted brands like HearthStone, Harman, Vermont Castings, and more.

Beyond the credit, these systems are a smart long-term investment. They’re cost-effective, eco-friendly, and ideal for off-grid or rural areas where electric or gas heating may not be as efficient or reliable. Compared to traditional fossil fuels, biomass options emit fewer greenhouse gases and rely on materials that are often locally sourced and replenishable, making them a smarter choice for the environment.

Why Planning Ahead Saves You More

It might feel too early to think about winter, but when it comes to heating systems, waiting can cost you. Inventory moves fast as the seasons change, and installation appointments fill up quickly.

Rely on our experts to help you every step of the way—from selecting the right stove to handling paperwork and installation.

Take Advantage While You Can

The biomass tax credit offers an incredible opportunity to upgrade your home’s heating system while saving money. If you’ve been considering a wood or pellet stove, now’s the time to act. Shop early, get ahead of the winter rush, and lock in your savings.

Visit one of our AES Hearth & Patio showrooms in Camp Hill, Newville, or Burnham—with a new location coming soon to Chambersburg, PA! Schedule a consultation to learn more about eligible products and how to get started.