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The Federal Wood Stove Tax Credit Ended. Here Is What Your State Still Pays.

The federal 25C credit is gone for any stove installed in 2026. Internal Revenue Code §25C, the Energy Efficient Home Improvement Credit that paid up to $2,000 on a biomass stove or boiler, was terminated early by Public Law 119-21 (the One Big Beautiful Bill Act, signed July 4, 2025). The IRS states it plainly: "The credit will not be allowed for any property placed in service after December 31, 2025."

A 2023 through 2025 install is still claimable. The IRS states the credit "is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025." You claim it on Form 5695, Residential Energy Credits, Part II, with the return for the year the stove was placed in service.

No federal replacement was found. We checked the IRS home energy credits pages and found no successor program for biomass stoves. That is what our check returned, not proof that nothing exists anywhere in federal law.

State and local money still exists in 8 states. We checked all 50 states at the administering agency's own pages. Eight states have at least one program we verified and found currently open: Alaska, Arizona, California, Nevada, Oregon, Vermont, Washington, and Maine. Thirty-three states returned no program at the agency's own pages. Eight states blocked our automated check and are recorded as unknown, not as zero.

Verified as of August 15, 2026. This page is a directory of published program terms. It is not tax advice. Confirm eligibility with the administering agency and a tax professional before you rely on any figure here.

64 data points behind this guide, verified as of Aug 15, 2026. How we count this.

What actually changed

Section 25C paid 30% of a qualifying project, capped at $2,000 a year, on biomass stoves and boilers rated at least 75% thermal efficiency (IRS, Energy Efficient Home Improvement Credit, page last updated April 28, 2026). That credit had a scheduled life through 2032. The One Big Beautiful Bill Act cut it short by seven years.

The cutoff is the placed-in-service date, not the purchase date and not the contract date. A stove bought in November 2025 and installed in January 2026 does not qualify, because the statute keys on when the property was placed in service.

One consequence most pages still have not caught up with: the IRS also discontinued the periodic written reports that qualified manufacturers had to file, including reports for property placed in service before January 1, 2026. That matters only to manufacturers. It is worth naming because the 2025 QMID (qualified manufacturer identification) requirement generated a lot of consumer-facing instructions that no longer apply forward.

FactStatusSource
§25C terminated for property placed in service after 2025-12-31In forceIRS FAQ, Public Law 119-21 (IRS Fact Sheet FS-2025-05, August 21, 2025)
2023 through 2025 installs remain claimableIn forceIRS, Energy Efficient Home Improvement Credit (updated April 28, 2026)
Biomass cap was $2,000/year at 75% thermal efficiencyHistoricalIRS, Energy Efficient Home Improvement Credit
Claim mechanism: Form 5695 Part IIIn force for 2023-2025 installsIRS, Energy Efficient Home Improvement Credit
Federal successor program for biomass stovesNone foundIRS, Home Energy Tax Credits (checked 2026-08-15)

A note on the efficiency threshold: the IRS text says "thermal efficiency rating." EPA's certified heater database reports "Overall Efficiency-HHV (%)." Most industry pages treat these as the same number. We do not attribute the letters HHV to the IRS, because the IRS page we read does not use them.


The 8 states with a verified, currently open program

Every row below was read at the administering agency's or utility's own page on the date shown. DSIRE was used to find programs, never to source a figure.

Alaska

Fairbanks North Star Borough, Air Quality Improvement Program change-out. $750 to $17,500 depending on what you remove and what you install: wood, pellet, or coal appliance to natural gas or propane pays $12,500; to an electric heat pump, $7,500; to a borough-listed pellet stove, $7,500; to a catalytic wood stove, $5,000; a hydronic heater to natural gas, $17,500; repair only of an EPA-certified wood stove, $750. Open to borough residents inside the PM2.5 nonattainment area. Funding is first-come and limited. Source: aq.fnsb.gov/changeout. Verified 2026-08-15.

Arizona

A.R.S. §43-1027, subtraction for converting a wood fireplace. Arizona lets you subtract the cost, capped at $500, for converting an existing wood fireplace to a qualified wood stove, wood fireplace, or gas fireplace on Arizona property. The statute applies to tax years after December 31, 1993 and carries no repeal or sunset language. Source: azleg.gov, A.R.S. §43-1027. Verified 2026-08-15. The Arizona Department of Revenue site blocked our fetch, so the current-year Form 140 line item was not cross-checked.

California

Monterey Bay Air Resources District, Wood Stove Change-Out Program. $2,500 for a wood or pellet stove or insert, $2,500 for an electric stove or insert, $5,000 for an electric heat pump. Serves Monterey, Santa Cruz, and San Benito counties. Eligibility is income-qualified or location-qualified in an SB535/SB1500 disadvantaged or low-income tract. The district's page carries an explicit FY2025-2026 open statement. Source: mbard.org. Verified 2026-08-15.

San Joaquin Valley Air Pollution Control District, Fireplace and Woodstove Change-Out. Amounts run to $3,500 for an insert or stove and $5,000 for an electric heat pump in Hot Spot/AB617 counties with natural gas service, plus $650 toward install. Counties with gas but without Hot Spot status: up to $2,000 for an insert, $3,500 for a heat pump, plus $1,500 for low-income households. Where no natural gas is available: up to $1,000 for a certified wood or pellet insert. Decommissioning pays up to $750. The figures come from the district's own voucher guidelines PDF dated October 2022, which is the newest version we found. The live landing page does not state whether the program is currently open, so we record its status as unknown rather than infer it. Source: valleyair.org voucher guidelines (PDF). Verified 2026-08-15.

Maine

Efficiency Maine, Biomass Boiler and Furnace Rebate. One third of project cost, up to a $6,000 rebate. Eligible buildings are single-family homes, duplexes, condos, and small mixed use of one to two units without a commercial meter. Equipment must rate at least 70% HHV efficiency and be installed by an Efficiency Maine Registered Residential Vendor. One biomass heating system per housing unit, lifetime. This covers boilers and furnaces tied to a distribution system. It does not cover freestanding stoves. Efficiency Maine's page says incentives are subject to change or termination without stating a current open or closed status, so we record status as unknown. Source: efficiencymaine.com. Verified 2026-08-15.

Nevada

Carson City and Douglas County Wood Stove Change-Out. $600 for a new wood burning stove, $800 for a new pellet stove, $1,200 for a new natural gas stove. Your existing stove must be pre-1992 and non-EPA-compliant, or an older zero-clearance insert. NDEP's page states the program has reopened and is active. Funding is limited. Source: ndep.nv.gov. Verified 2026-08-15.

Oregon

Oregon has no state-level stove program that we verified. Two county programs exist and neither is currently taking new applicants.

Multnomah County, Wood Burning Device Exchange. Paid $3,000 up to full replacement cost, varying by income and neighborhood, with priority for Cully, Lents, Portsmouth, and Powellhurst-Gilbert. The county's page states the program has run out of funding and offers a waitlist interest form only. Source: multco.us. Verified 2026-08-15.

Washington County, Wood Stove Exchange. Paid a $250 turn-in incentive for an uncertified stove or one certified between 1986 and 1992. The county's page states the program concluded as of June 2026 and is no longer accepting applications. Listed here as history, not as money you can get. Source: washingtoncountyor.gov. Verified 2026-08-15.

Vermont

Efficiency Vermont, Wood and Pellet Stove Rebate. $400 on a residential wood or pellet stove.

Central Wood Pellet Furnace and Boiler Rebate, from Efficiency Vermont and the Clean Energy Development Fund. $6,000 for a new high-efficiency wood pellet boiler or furnace installed as a primary central heating system in a home or business. Source for both: Vermont Forests, Parks and Recreation, residential incentives. Verified 2026-08-15. One caution about this page: as of our check it still advertised the repealed federal 25C credit as a live 30% credit. The state rebate figures above are Vermont's own and we verified them. The federal claim on that same page is out of date.

Washington

Department of Ecology, Columbia Basin Wood Stove Recycle Grant, 2025-2027 award. $500 for a working, uncertified home heating wood stove that is not listed in the EPA certified wood stove database. Limited to residents of 11 zip codes: 98824, 98848, 99301, 99321, 99323, 99330, 99343, 99344, 99349, 99357, and 99363. Two stoves per household. Outdoor stoves and pellet stoves are not eligible. The application PDF states the program ends June 30, 2027 or when funding runs out. Source: Ecology application (PDF). Verified 2026-08-15.


The 8 states where we do not know

Colorado, Kansas, Massachusetts, Michigan, Minnesota, New Hampshire, New Mexico, and Washington each had at least one agency domain that blocked our automated check. Washington appears in both lists: one program verified, one agency unreachable.

An empty table is not a finding. These states are marked "could not verify, check your state agency" rather than "no incentives," because a homeowner reading a blank row as an answer is the exact failure this page is built against. Several of these states have well-known air quality programs, and a browser check by hand is the correct next step for any of them.

Eleven additional program figures across other states were excluded rather than published. Each existed somewhere but could not be confirmed at a primary source on the check date. One example: North Carolina change-out figures appear on a Duke Energy release from 2018 whose live application page now returns a 404. A stale figure on a page like this is worse than a missing one.

Thirty-three states returned no current program at the agency's own pages. That is a checked answer, not an unchecked blank.


What to do next

  1. Installed in 2023, 2024, or 2025 and never claimed it? The credit is still available for the year the stove was placed in service, on Form 5695 Part II. Talk to whoever prepares your return.
  2. Installing in 2026? Assume zero federal credit. Check the state list above, then check your county and your air district, because most of the money that survives is local rather than state-level. Two of the eight verified states pay through counties and air districts, not the state government.
  3. Check your electric or gas utility separately. Utility change-out and weatherization programs move independently of state budgets and are not covered by this page's 50-state agency check.
  4. Get the efficiency rating in writing before you buy if any program you are applying for has a threshold. Our EPA certification guide explains where that number comes from and which models publish one.

Methodology and freshness

Fifty states checked at the administering agency's or utility's own published pages. Source precedence: statute or agency page first, then DSIRE as an index only, then nothing else. Each row carries a verified-as-of date. Any figure we cannot re-verify at review is removed rather than kept with a stale stamp. Review cadence: quarterly, and immediately on any federal or state legislative change.

Coverage on this check: 12 verified rows, 33 states with no program found, 8 states with an access gap, 11 figures excluded for lack of a primary source. 64 rows total across 50 states.

Corrections: if you administer one of these programs and a figure here is wrong, tell us and we will fix or remove it.

This page is a reference directory, not tax or legal advice. We do not sell, install, or service stoves and we do not arrange installation work.

See our methodology for how this guide's figures were sourced and verified.