Wood & Pellet Stove Tax Credit 2026: The Federal Credit Ended. Here's What's Left
There is no federal tax credit for a wood or pellet stove installed in 2026. The 30% credit for biomass stoves, worth up to $2,000 a year, ended for stoves installed after December 31, 2025, under the budget reconciliation law passed in July 2025. If you installed a qualifying stove in 2025, you can still claim it on your 2025 tax return.
What's left in 2026 is a handful of state and local programs, and the savings you control yourself. The simplest is sales tax: we charge No Sales Tax in any state, on the stove, the venting and the hearth pad, and every stove ships free.
What the federal credit was, and when it ended
| Federal biomass stove credit (Section 25C) | |
|---|---|
| Credit | 30% of purchase and installation cost |
| Annual cap | $2,000 |
| Efficiency rule | 75% or higher (HHV), per the EPA certified wood heater database |
| Claimed on | IRS Form 5695 |
| Covered | Stoves installed from January 1, 2023 through December 31, 2025 |
| 2026 | Not available |
Sources: the Hearth, Patio & Barbecue Association and the Alliance for Green Heat, 2026. This is general information, not tax advice; check with your tax preparer.
Installed a stove in 2025? You can still claim it on your 2025 return using Form 5695, as long as the stove was installed in 2025 and is rated 75% HHV or higher. For tax year 2025, the form asks for the manufacturer's four-character Qualified Manufacturer Identification Number (QMID), which the manufacturer provides. Our pellet stove installation guide covers the parts, cost and steps.
Watch for outdated listings. Plenty of retailer and manufacturer pages still advertise the credit. We found it on Grand Teton's product pages and on retailer listings for Cleveland Iron Works stoves in October 2026 (see our Grand Teton and Cleveland Iron Works comparisons). Don't build it into your budget.
The saving you still get: No Sales Tax
A store charges your state and local sales tax on the stove and on everything you buy to install it. We don't, in any state. Here's what that's worth on the stove alone:
| Stove | Price | Saved at 6% tax | Saved at 8% tax | Saved at 10% tax |
|---|---|---|---|---|
| ComfortBilt Alpine HP41 | $1,299 | $78 | $104 | $130 |
| ComfortBilt HP22 | $2,399 | $144 | $192 | $240 |
| Drolet ECO-65R | $4,129 | $248 | $330 | $413 |
Add the vent kit and hearth pad and the saving grows. Free shipping takes off the delivery fee most big-box stores charge for a stove, and our price match guarantee covers the stove price itself. Call 1-888-914-0022 if you've found the same stove for less.
State and local wood and pellet stove programs in 2026
There's no national program, but some states, counties and air districts still pay you to replace an old stove. These are the ones the Alliance for Green Heat's state trackers listed as active in mid-2026:
| Where | Program | What it pays |
|---|---|---|
| Idaho (statewide) | State income tax deduction | 40% of purchase and professional installation cost in year one, then 20% a year for three years, up to $5,000 a year. Replacing a woodstove not certified to the 2020 standard; pellet stoves qualify as the replacement |
| Idaho (St. Maries) | DEQ woodstove changeout | Rebate through a participating vendor; applications through December 31, 2026 |
| Washington (Spokane County) | Woodstove replacement | Up to $1,400 for a pellet stove or $1,000 for a certified wood stove |
| Washington (Clark, Cowlitz, Lewis, Wahkiakum counties) | SWCAA woodsmoke reduction | $2,000 for a pellet stove, $4,000 for low-income households; through June 30, 2027 or until funds run out |
| Washington (Thurston, Mason, Clallam, Jefferson) | ORCAA | $1,000 for a pellet stove |
| California (several air districts) | Woodsmoke reduction vouchers | Typically $1,500–$2,500 standard and up to $5,000 or more for low-income households, depending on the district |
| Vermont | Efficiency Vermont | $400 instant rebate at participating retailers |
Ended: Maryland's clean-burning stove rebate ($500 wood, $700 pellet) took its last applications in 2024; Oregon's state stove tax credit ended in 2017; Maine's stove rebate ended in 2018; and Vermont's change-out program closed in July 2026.
Read the fine print before you buy. Most change-out programs require you to replace an old, uncertified stove, get pre-approval, use a participating local vendor or installer, and recycle the old stove. Many won't reimburse a stove bought elsewhere, so check the program's rules first. The Idaho deduction is based on your purchase and professional installation cost. For current programs in your state, see the Alliance for Green Heat state pages, your state energy office or your local air agency.
Efficiency matters more than the credit did
The credit's 75% HHV threshold was a useful filter, and it still is: a more efficient stove burns fewer pellets for the same heat, every winter, for the life of the stove. The ComfortBilt stoves we sell are EPA certified at 80% or higher: the Alpine HP40 at 81%, the HP22 and HP22N at 80.5%, and the HP50S at 80.4%. Our guide to pellet stove efficiency ratings explains how to compare the numbers, and pellet stove vs propane shows what that means for your heating bill.
Frequently asked questions
Is there a tax credit for wood stoves in 2026?
Not a federal one. The 30% credit ended for stoves installed after December 31, 2025. A few states and local programs still offer deductions or rebates; see the table above.
Is there a pellet stove tax credit in 2026?
No. Pellet stoves were covered by the same federal credit, which ended with 2025. Idaho's state deduction and several local change-out programs in Washington and California still cover pellet stoves.
Can I still claim a stove I installed in 2025?
Yes, on your 2025 federal return with Form 5695, if the stove was installed in 2025 and rated at least 75% HHV. You'll need the manufacturer's QMID.
Will the credit come back?
No replacement federal credit had been passed as of October 2026. Don't delay a purchase waiting for one; the No Sales Tax saving and free shipping are available now.
Related guides
- Pellet stove prices: what a pellet stove costs installed
- Wood stove prices by brand
- Cheap pellet stoves under $1,500
- What EPA certification means on a wood stove
- Wood stove installation cost
Every stove we sell ships with No Sales Tax in any state, free shipping and a price match guarantee. Browse pellet stoves and wood stoves, or call 1-888-914-0022.