King, Collins introduce BTU Tax Credit Expansion Act

Sens. Angus King, I-Maine, and Susan Collins, R-Maine, on Dec. 9 introduced The BTU Tax Credit Expansion Act, which aims to increase the maximum rebate for biomass stoves and boilers from $2,000 to $8,000.

The Inflation Reduction Act, signed by President Joe Biden on Aug. 16, included a 10-year extension of the residential tax credit for qualifying wood and wood pellet heating appliances. That extension applies to qualifying appliances installed in a residence on or after Jan. 1, 2023. Taxpayers can claim a tax credit of 30 percent of the cost of appliance and installation, with a cap of $2,000. The new legislation introduced by King and Collins aims to increase that cap to $8,000.

“With heating costs on the rise, and global temperature norms changing due to climate change, it is vital that we make home heating options like pellet stoves more affordable for Maine families,” King said. “The BTU Tax Credit Expansion Act will add financial benefits for families trying to find less expensive alternatives to traditional home heating systems – helping them to enjoy significant long-term savings. This tax credit is a win-win for Maine families that will cut utility costs, reduce fossil fuel emissions, and prevent tough choices like paying for heating, or putting food on the table.”

“Wood biomass is a cost-effective, renewable, and environmentally friendly source of energy that helps individuals heat their homes in the winter months, supports our forest products industry, and creates jobs here in Maine,” Collins said. “By increasing the credits available for biomass stoves and boilers to more closely align with incentives provided for other energy systems, this legislation would encourage the use of this proven and highly efficient heating technology.”

To date, Sens. Jeanne Shaheen, D-N.H.; Maggie Hassen, D-N.H.; and Lisa Murkowski, R-Alaska, have signed on to cosponsor the bill.