Qualifying Wood Stove Deduction

June 13, 2006


The state of Idaho offers taxpayers who buy new wood stoves, pellet stoves, or natural gas or propane heating units for their residences a tax deduction to replace old, uncertified wood stoves. You may deduct the cost of a new natural gas or propane heating unit, pellet stove, or EPA-certified wood stove if:

  • it is in your residence,
  • it replaces an old wood stove that does not meet EPA requirements,
  • the purchase and replacement occurs within the same year, and
  • the old wood stove is dropped off at a Department of Environmental Quality (DEQ)-approved site within 30 days.
The deduction is up to 40% of the cost of purchase and professional installation in the year the wood stove is replaced. For the next three years the deduction is 20% of the total cost per year. The total annual deduction cannot exceed $5,000. The tax deduction applies only to the replacement of uncertified wood stoves. A common hearth fireplace is not considered a wood stove. However, the tax deduction applies if an old fireplace insert is replaced with another that meets current EPA standards, or with a certified wood stove, pellet stove, a gas/propane appliance, or other eligible heating device. You must receive proof via a receipt when you drop your old wood stove off at a DEQ-approved site to be eligible for the credit. The fire-brick lining must be removed before drop-off. For additional tax credit instructions please visit the DEQ woodstoves website.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Idaho
Incentive Type: Personal Tax Deduction
Web Site: http://www.deq.state.id.us/air/prog_issues/burning/woodstoves.cfm
Administrator: Idaho State Tax Commission
Start Date: 1/1/76
Eligible Renewable/Other Technologies:
Incentive Amount: 40% of cost of purchase and professional installation in first year, 20% for next 3 years
Maximum Incentive: $5000 annual limit


Name: IC 63-3022C
Effective Date: 1/1/76
Expiration Date: None


Name: Public Information
Organization: Idaho Tax Commission
Address: 11321 W. Chinden Blvd.
Boise ID 83714
Phone: (208) 334-7660
Email: taxrep@tax.idaho.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.