Tax Credit for a Gas Fireplace

Tax Credit for a Gas Fireplace
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As is the case if you use a variety of different energy sources for fuel, there are certain tax credits that can be obtained for using a gas fireplace in your home. As the name suggests, gas fireplaces use gasoline to spark and maintain a fire in your home, as opposed to the traditional method of lighting a group of logs and brush for warmth. Gas fireplaces help to avoid the hassle of seeking out and cutting or purchasing firewood on a regular basis.

Tax Credits

Individuals who purchase a 75 percent efficient biomass stove or better are eligible for a 30 percent tax credit based on the purchase price of the gas fireplace. These fireplaces are fueled by denatured ethanol gas and qualify for the new tax credit under the federal tax code. Be sure to ask before making a purchase whether the fireplace uses denatured ethanol if you are intent on receiving the tax credit.


The tax credit for your gas fireplace must be claimed under IRS form 5695 with your yearly taxes. From there, you must calculate your tax credit -- the purchase price minus 30 percent -- and place that amount on line 52 on your IRS 1065 tax form. You are not required by law to attach a copy of the official receipt to the paperwork, but saving them will enable you to be exact in your calculations.

Green Alternatives

The entire initiative was set in place to help stimulate the purchase of eco-friendly alternatives to traditional fuel-burning fireplaces that are not healthy for the environment. The government is willing to give you tax credits as an extra incentive for purchasing these products and making a commitment to help keep the environment clean.

New Qualifying Alternatives

Wall-mounted fireplaces that burn this same denatured ethanol gas are also a modern alternative to the the traditional fireplace and benefit from the same tax credits as the aforementioned options. There are also a number of stylish alternative designs that utilize modern design techniques and move away from what we traditionally consider to be a fireplace. These units are made from materials such as graphite, marble and other natural materials that can give your home a sleek, elegant look.