Tax Break for Coal Stoves/Boilers !!

My wife works for H&R Block and she got us back an extra $450 ( Feds) for heating our home and domestic water with a source other than electric. I think this even might include propane, will have to ask her though.
If you guys take your taxes to a place to get them done, be sure and mention this. Nothing like free money !!!

If you do them yourself, I can ask her what the code, or whatever it is to find this tax break. Just shoot me a PM. I might just ask her tonight and post it right here for everyone.

Looks llike the payoff for my boiler just went down some more

BTW, everyone that does this owes me 20% of it now !! just kidding...

ktm rider;
Its not free money. Its your money they are returning to you without interest. The government does not have its own money.
I'm glad you were able to deduct that from what you already gave them.
I do my own tax return and noticed that coal was not listed as one of the items for that deduction. I would be interested to know where to find that specific deduction so I to would be able to reduce the amount of my cost for my new stove.
Thanks

The closest thing I could find to that is this: http://www.irs.gov/pub/irs-drop/n-06-26.pdf

No mention of coal though, just Energy Star furnaces. I'm no lawyer though and you have to be a rocket scientist to understand any of those government publications. I think they do it on purpose to keep their lawyer and accountant buddies in business.



Have any other info?

I didn't hear anything!

That is the same criteria I was using and I don't think I'll take that deduction. I'll just enjoy my new stove and I'm still saving money.

I'll ask the wife when she gets home tonight where tho find it. If I am not mistaken it does not state what kind of energy just that it is "other than electric"

One deduction was for heating your home and the other was for heating your domestic water.

Your right, it is not "Free Money" but it is $450 more than I had before.

Just talked to the wife and this is only if your boiler/stove was installed this year.

ktm rider;
I wonder if it makes a difference wether it is a stove or central heating device. Is your unit a boiler or hot air furnace?
I heat my whole house with my stove. It is toasty.
My house is all electric and it would cost a fortune to heat with electricity.

Installed on October 25 2006. You mean 06 right.

EasyRay,
Yes, I believe you would qualify if you just put it in this last tax season. If it heat your wjole house I don't see why not. I have indoor boiler in my garage but I also have electric as a backup.

ktm rider;
Thanks for the info. I'll have to give the requirements a closer look.

I just talked to the accountant who does my taxes and we read through that particular section of the tax code. Coal stoves absolutely do not fit the criteria needed to take the deduction. The deduction is for non fossil fuel alternative energy heat sources or the unit must have an energy star compliancy certificate for a fossil fuel unit. I talked to Alaska and they said no coal appliance will meet energy star requirements. So bottom line coal stoves and furnaces do not apply to this deduction.

O.K. That settles that I guess. The wife didn't specify she just asked what I burn and since my boiler is a multifuel ?wood/coal/oil I guess I qualify because of the wood burning part.

From the EPA energy star web site:

"Note — not all ENERGY STAR products will qualify for the tax credit. The ENERGY STAR specification is:

AFUE >= 90 for furnaces
AFUE >= 85 for boilers"

Also ....

"Manufacturer’s Certification Statement is required."

NO coal stove, furnace or boiler has this and it would be very, very difficult to design a multi-fuel appliance that could meet these efficiency numbers when operation on the credit required fuel; gas, oil or propane.

The DOE's technical definition of AFUE is as follows:

"The measure of seasonal or annual efficiency of a furnace or boiler. It takes into account the cyclic on/off operation and associated energy losses of the heating unit as it responds to changes in the load, which in turn is affected by changes in weather and occupant controls."

The AHS coal gun or A-A antratube, the highest efficiency boiler on the market, has a combustion efficiency of 84%. It's seasonal efficiency would be less.

Yanche

I will bet there is a herd of A-A Anthratubes out there running in the 86-87% range. A real good install and tune up and they will run up there.