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President Bush signs tax credit for wood, pellet stoves

Posted by Laurie Batter on November 10, 2008 at 2:23pm in Business Growth, Expansion, and Current Opportunit
For dealers NOT selling stoves, this might be a good year to get into this product category. LauriePresident Bush signs tax credit for wood, pellet stovesHPBA and Pellet Fuels Institute succeeded in including the tax credit in Energy Tax Extenders bill-- Casual Living, 11/4/2008 9:39:00 AMPresident Bush recently signed an economic rescue legislation that includes a $300 tax credit to consumers who purchase a 75%-efficient wood- or pellet-burning stove in 2009.The Hearth, Patio & Barbecue Association, in conjunction with the Pellet Fuels Institute, succeeded in including the tax credit to help consumers fight rising home heating costs in the Energy Tax Extenders bill, attached to H.R.1424.HPBA and PFI have worked to educate elected officials and their staffs on the benefits and energy efficiency of wood and pellet stoves. These efforts paid-off. As the cost of heating oil and natural gas rise, this $300 tax credit for the purchase of a wood or pellet stove in 2009 will help consumers save on energy costs."This is a huge victory for our industry and consumers," said Jack Goldman, president of HPBA. "It is a good example of how the industry can work in Washington and on a grassroots level and help pass good legislation. With the rise in home heating prices, this tax credit will help alleviate some of the initial cost for those consumers wanting to purchase a 75%-efficient wood or pellet stove next year."Based in Arlington, Va., HPBA is the North American industry association for manufacturers, retailers, distributors, representatives, service firms and allied associates for all types of hearth, barbecue and patio appliances, fuels and accessories. PFI, also based in Arlington, is a trade association that represents the fuel preparation and clean-burning technology of renewable biomass energy sources

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Replies

  • Laurie Batter January 10, 2009 at 7:03am
    Great points Chuck. It is important for us to be aware of the complete picture if we are going to branch into other product areas for sales - service after the sale is critical - just as it is in the pool and hot tub industry. Thanks for taking time to respond! Laurie
  • Chuck Burkholz January 9, 2009 at 8:45pm
    Good idea, Laurie. Pellet stoves are really nice, and fun too! I put one in my living room 4 years ago and absolutely love it!

    Beware, though, if you want to get in the biz. It's more than a fill-in, to be sure. Here in Wisconsin, pellet stoves are available from a number of medium sized "big box" style stores, heating guys, farmers with "connections", online, and, of course, pellet stove stores. Prices range quite a spectrum - $900 on up. Your customers will expect you to be able to service the product, there will be inventory to carry, pellets to buy in the summer and store until winter, fall cleaning and maintenance.

    Installation and service can certainly keep you and your techs busy in the winter, but many installations may need to be done in the fall, during the pool closing season. Once mid-January comes along, demand for new stoves falls off. Hopefully your inventory is sold off by then. Sure, you can sell pellets, but the competition is fierce.

    Best of luck to those who take it on. I bet with the right circumstances it would work well. Do your homework!
  • Mark Slaby November 17, 2008 at 6:40pm
    Laurie - Thanks for the insight. Be it wood stoves, solar, wind or something else -- alternate energy is going to be a part of our industry. Will we see a nuclear powered pool?
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    • Laurie Batter November 14, 2008 at 1:40pm
      I will continue to bring news from my news feeds to the network when it seems like it would have some impact for many of us.
  • Steven Gorlin November 10, 2008 at 2:29pm
    Laurie,
    Thank you for this important information
    • Laurie Batter > Steven Gorlin November 10, 2008 at 2:32pm
      My hope of course, is that the pellet and wood stove industry is positioned to support this economic incentive with enough product. Presuming they don't want to experience what happened a few years ago.
This reply was deleted.

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