The Pellet Fuels Institute celebrated at this time the inclusion of an extension of the residential tax credit score for qualifying wooden and wooden pellet heating home equipment within the Inflation Discount Act of 2022, signed into legislation at this time by President Joe Biden. The invoice consists of $430 billion in investments in well being care and clear power priorities, together with a 10-year extension of the residential tax credit score on qualifying wooden and wooden pellet home equipment.
Qualifying home equipment put in in a residence on or after Jan. 1, 2023, will generate a tax credit score of 30 p.c of the price of the equipment and set up. A $2,000 restrict was launched to the tax credit score, a stipulation not included when the tax credit score was first established in an omnibus spending bundle signed into legislation by then President Donald Trump in December 2020. A tax credit score for qualifying home equipment deployed in business settings was not included within the laws.
“We’re extraordinarily gratified to safe a 10-year extension of the tax credit score we and our companions within the trade labored so onerous for therefore lengthy to safe,” mentioned Tim Portz, govt director of the Pellet Fuels Institute. “A 10-year extension offers the tax credit score the form of runway our provide chain companions have been asking for, to finest maximize the tax credit score’s impression on pellet equipment gross sales throughout the nation.”
The tax credit score, initially conceived and launched because the Biomass Thermal Utilization Act (BTU Act), has been the concentrate on the PFI’s federal advocacy efforts for over a decade. “The BTU Act’s goal was to safe the tax credit score that different renewable power applied sciences have benefited from for years,” Portz mentioned. “It’s gratifying to see our long-term and most up-to-date advocacy efforts bear fruit.”
Over the previous six months, the PFI engaged in a focused and strategic advocacy marketing campaign recognizing the Biden administration’s curiosity in passing significant clear power laws. The hassle included member calls with key senators and senate power workers to articulate the worth wooden pellet manufacturing brings to the forest merchandise sector and economies of their states.
“As a company, we actually centered on telling the compelling story of wooden pellet manufacturing within the states the place we function,” Portz mentioned. “On the coronary heart of it’s the good use of residual wooden waste streams to provide a clean-burning, renewable and inexpensive house heating gasoline. That story resonated with every senator and workers member we talked to, and we’re happy with the constructive coverage final result it helped safe for our members.”