Sierra & Thelin Hearth Products

Wood & Pellet Stove Tax Credits & State Incentives (2026 Update)

Upgrading to a high-efficiency wood or pellet stove can offer meaningful savings through various state and local incentive programs designed to support cleaner, more efficient home heating. While the federal Biomass Tax Credit has now expired, many states continue to provide rebates, discounts, and vouchers to help offset the cost of upgrading to a modern, EPA-certified stove.

Our brands offer a variety of wood and pellet stoves, many of which are designed to meet the stringent efficiency and emission standards required for these incentive programs.

*Wood and wood pellets are classified as biomass and are recognized by most U.S. states as a renewable energy source.

Current Federal Tax Credit Status

Federal Tax Credit (Section 25C) – Expired December 31, 2025
The Energy Efficient Home Improvement Tax Credit (IRC Sec. 25C), which previously offered a 30% credit (up to $2,000 annually) for qualifying biomass stoves, expired on December 31, 2025.

For 2026 Installations: Currently, there is no federal tax credit available for new wood or pellet stove installations. We recommend focusing on the state and local incentives listed below.

State Rebates and Incentives

California Rebates & Incentives

California continues to lead with localized "Changeout" programs managed by regional Air Quality Management Districts.

Woodsmoke Reduction Program (2026): Managed by the California Air Resources Board (CARB), this program offers vouchers to replace old, high-emission stoves with cleaner EPA-certified models.

NCUAQMD (North Coast): As of early 2026, residents in Del Norte, Humboldt, and Trinity Counties can qualify for incentives ranging from $2,500 to $7,000 for eligible wood or pellet stoves.

BAAQMD (Bay Area): The "Clean HEET" program continues to offer stacked incentives for residents transitioning to cleaner technologies.

Eligibility: Generally requires the replacement of a non-certified wood-burning device used as a primary heat source.

Oregon Rebates & Incentives

Oakridge Air Program: Backed by EPA Targeted Airshed Grants, this program serves the Oakridge and Westfir communities. Funding is available into 2026 for certified wood stove upgrades and weatherization to reduce local smoke pollution.

Energy Trust of Oregon: While focusing heavily on heat pumps, some local utilities offer "Savings Within Reach" for moderate-income households which can be applied to high-efficiency heating upgrades.

Washington Rebates & Incentives

Local Change-out Programs: Washington does not have a single statewide rebate, but local air agencies (such as Puget Sound Clean Air Agency or Olympic Region Clean Air Agency) frequently run seasonal changeout programs.

Utility Discounts: Some local PUDs (Public Utility Districts) provide low-interest loans or small grants for upgrading to EPA-certified heating systems to meet state air quality goals.

Idaho Rebates & Incentives

DEQ Woodstove Change-out Programs: The Idaho Department of Environmental Quality (DEQ) manages several regional programs (e.g., St. Maries, West Silver Valley, and Southeast Idaho).

Incentive Amounts: In 2026, rebates in areas like St. Maries can reach up to $6,500 for low-income households and up to $4,000 for standard applicants.

State Income Tax Deduction: Idaho offers a unique state tax deduction (not a credit) for 40% of the cost of a biomass energy device in the year of installation, with additional 20% deductions over the following three years (capped at $5,000 annually).

Vermont Rebates & Incentives

Efficiency Vermont (2026): Vermont remains one of the most active states for biomass incentives.

$400 Instant Discount: Available at participating retailers for new, high-efficiency wood and pellet stoves that are EPA-certified and meet a thermal efficiency of >75% (HHV).

Central Heating: For homeowners installing central wood pellet boiler systems, incentives can reach up to $6,000.

Find Incentives Available in Your Area

Because state and local programs change based on funding cycles, we recommend connecting with your local authorized Sierra or Thelin dealer to:

Confirm Eligibility: Determine if your specific county or utility provider has an active 2026 program.

Verify Models: Ensure the stove model you select meets the specific emission (g/hr) and efficiency (HHV) requirements of the local grant.

Documentation: Get help with the necessary paperwork, such as "Destruction Certificates" for your old stove, which is often required for reimbursement.

Visit our dealer locator to find a hearth professional near you who can guide you through the 2026 incentive landscape.