Oregon Hearth, Patio & Barbecue Association

State Tax Credit Programs

Oregon Residential Energy Tax Credits (RETC)

The Oregon Department of Energy filed permanent rules for the Residential Energy Tax Credit program today. The rule amendments went into effect January 1, 2014 and they are retroactive to January 1, 2013. The permanent rules rework the incentive calculation for wood and pellet stoves.

To view the Oregon Dept. of Energy's web page on the RETC program for wood and pellet Stoves, Click HERE

For more information about this rulemaking visit the Oregon Department of Energy online at: http://www.oregon.gov/energy/CONS/Pages/Rulemaking-RETC.aspx

Summary of Rule Changes:

  • Tax credits continue in 2014. Woodstoves must be 3.5 gph or better. Pellet and Catalytic woodstoves qualify at 2.5 gph.
  • Applications turned in in 2013 are retroactive to these rules. In 2013 Woodstoves 4.0 gph or lower will be eligible.
  • Stoves must BOTH meet the gph requirements and have efficiency numbers at or better than ODOE's listed levels to calculate out to receive a tax credit.
  • The proposed levels are 4.0 gph for wood stoves for 2013 and 3.5 gph in 2014. Efficiency levels of 63% wood; 69% catalytic; and 74% pellet.
  • The tax credit is the average heating need x stove efficiency improvement x 60 cents. The maximum is $1,500 but the majority will be likely under $500. 
  • ODOE will no longer keep a list for woodstoves on their website. They will refer to the EPA list for both gph and efficiency data. However, some pellet stoves with independent lab results for efficiencies will be kept by ODOE. For exact wording on this see the actual rules page 13, item 11 (e). Click HERE to see the rules (pdf).  

Background: OHPBA, HPBA and industry experts have been instrumental in negotiating with DOE on rules that affect wood and pellet stoves. It it expected that rules will increase the number of wood and pellet stoves that are eligible for the tax credit, which starting in 2013 has been a major issue. Also, more realistic efficiency levels have been discussed that should result in higher tax credits. Tax credit applications submitted in 2013 that have been held up should be allowed to be processed after the rules take effect. Rules that are in effect January 1, 2014 will resolve may of the issues. For more information about the program contact Maureen Bock, Energy Incentives Program Manager, 503-934-4004, maureen.p.bock@state.or.us.

If you are a manufacturer, click HERE for more information about listing stoves for the program that do not appear on the EPA list of certified stoves.

Applying the Tax Credit

The appliance must be purchased in the year in which the tax credit is applied. You need to show an invoice in the tax credit application. For example, if a stove is purchased in December it would be for that year. The "operational date" can be between the purchase date and April 1.  That would mean that you could buy it in December but get a permit approval in January and still claim the tax credit in the year you bought it. However, if the permit is not approved until after April 1, you could not claim the tax credit in the year you bought it.  There is an "outside air" requirement. Click HERE for a letter from ODOE that addresses some of the problems that have been encountered with the application.

Contacts at the Oregon Dept. of Energy related to the RETC program

Matt Hale, RETC Manager, 503-373-2297, matt.hale@state.or.us
Deby Davis, RETC Lead Worker, 503-378-8351,  deby.s.davis@state.or.us
Elizabeth Ross, Rulemaking, 503-378-8534,  elizabeth.ross@state.or.us

Oregon Biofuels Tax Credit

Did you know you can take a taxz crediot for burning cord wood? The Oregon tax credit applies to companies and people who collect and consume bio fuels such as bio diesel, bio home heating oil, and biomass, such as cord wood and pellets in the case of home heating.

•The credit is $10 per bone dry ton of pellets or $10 per cord of wood.

•The credit is for fuel burned (not bought) regardless of the source. In other words, if you burn cordwood that came from a tree that fell in your backyard, that qualifies. There will be more detail on type of wood that qualifies once the rules are out.

•The credit only applies if a pellet stove is used or a woodstove on the list of EPA certified wood stoves.

The entire list of rules for Bio Fuels tax credit can be found at: www.oregon.gov/ENERGY/RENEW/docs/330-150Draft.pdf


Idaho Woodstove Tax Credit

The Idaho DEQ's statewide woodstove program encourages the use of cleaner-burning woodstoves.  It is designed to help homeowners burn more efficiently and create less pollution.  The State of Idaho offers taxpayers who buy new woodstoves, pellet stoves, or natural gas or propane heating units for their residences a tax deduction to replace old uncertified woodstoves.  (Fireplaces do not qualify)   Proof of disposal is required.  You can deduct 40% of the cost of purchase and professional installation in the year the woodstove is replaced, and 20% of the cost per year for the next three years (the total annual deduction cannot exceed $5,000).

OHPBA, PO Box 135, Salem, OR 97308-0135, 503-585-8254, www.ohpba.org

Affiliated with Hearth, Patio and Barbecue Association, Arlington, VA  www.hpba.org

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