The federal 25C wood and pellet stove tax credit has ended
Yes, it ended. The federal Energy Efficient Home Improvement Credit (IRC §25C), which covered qualifying biomass stoves and boilers at 30% of cost up to $2,000 a year, does not apply to any appliance placed in service after December 31, 2025. The termination was enacted by the One Big Beautiful Bill Act, Pub. L. 119-21 §70505.
But if your stove was installed before that date, you have not missed anything. A qualifying appliance placed in service between January 1, 2023 and December 31, 2025 is still claimable on your tax return for the year it was placed in service, using IRS Form 5695. The credit ending does not claw back an install that already happened.
This page explains a tax rule; it is not tax advice and we are not your tax adviser. Confirm your own eligibility with the IRS or a qualified preparer before filing.
7 IRS-sourced facts on this page, verified as of Aug 14, 2026. How we count this.
What the IRS says, fact by fact
Each row below is a single statement with the IRS page it was read from and the date we read it. Where the IRS wording is decisive we quote it rather than paraphrase.
| Fact | What it says | Applies to | Source | Verified as of |
|---|---|---|---|---|
| Section 25C credit terminated | "The credit will not be allowed for any property placed in service after December 31, 2025." | property placed in service after 2025-12-31 | IRS Fact Sheet FS-2025-05 | Aug 14, 2026 |
| Credit window for still-claimable installs | "The credit is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025." | property placed in service 2023-01-01 through 2025-12-31 | IRS | Aug 14, 2026 |
| Biomass stove/boiler credit amount | "Biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year." | biomass stoves and biomass boilers placed in service 2023-2025 | IRS | Aug 14, 2026 |
| Efficiency threshold | At least 75% thermal efficiency rating | biomass stoves and biomass boilers placed in service 2023-2025 | IRS | Aug 14, 2026 |
| Claim mechanism | "File Form 5695, Residential Energy Credits Part II, with your tax return to claim the credit." | taxpayers claiming a 2023-2025 install | IRS | Aug 14, 2026 |
| Periodic written reporting discontinued | Because of the accelerated termination of the section 25C credit, periodic written reports — including reporting for property placed in service before January 1, 2026 — are no longer required. | qualified manufacturers | IRS Fact Sheet FS-2025-05 | Aug 14, 2026 |
| Federal successor program | None found | federal incentives for biomass stoves after 2025-12-31 | IRS | Aug 14, 2026 |
What replaced it
At the federal level, nothing. We found no successor federal credit or rebate for biomass heating appliances placed in service after December 31, 2025. What remains is state, utility, and local: see incentives by state, where every figure carries its own source and verification date.