Federal Biomass Tax Credit Will Now Expire in 2025

As part of the federal Budget Reconciliation Act, the biomass tax credit will now expire on December 31, 2025 instead of 2032. This credit is part of the Energy Efficient Home Improvement Tax Credit (IRC Sec. 25C) and offers up to 30% back on qualifying stoves and installation costs up to $2000.

The decision to eliminate the tax credit was announced this fall, and anyone hoping to take advantage of the credit must complete their stove purchase and installation by December 31, 2025.

Originally introduced in the Inflation Reduction Act of 2022, the elimination of the Energy Efficient Home Improvement tax credit is one of many dramatic cuts to clean energy tax incentives made under the One Big Beautiful Bill Act (OBBBA).

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