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All of Vermont · Tax exemption

Sales Tax Exemption for Advanced Wood Boilers

Run by Vermont Department of Taxes

High-efficiency wood or pellet boilers and furnaces installed as a home's primary central heating system are exempt from Vermont's 6% sales and use tax, through June 30, 2027.

Open Checked Oct 26, 2026

Amounts

How much you get

Sales of advanced wood boilers are exempt from Vermont's 6% sales and use tax.

Eligibility

Do I qualify?

You need to meet all 2 of these.

  • Your home is in Vermont.

  • The boiler or furnace must meet the state definition of an advanced wood boiler (primary central heating, at least 85% efficient, a week of fuel storage, automated startup, shutdown and fuel feed, and DEC emissions standards).

Equipment

What equipment counts

The program sets these minimums for furnaces, ac and thermostats.

  • Boilers

    Boiler or furnace installed as a primary central heating system, rated at 85% or more higher heating value (gross calorific value), with at least one week of fuel storage, automated startup and shutdown and automated fuel feed, and meeting Department of Environmental Conservation efficiency and air emissions standards.

Applying

How to apply

The discount comes off at the register. The exemption is repealed effective July 1, 2027.

  1. Choose a boiler or furnace that meets the advanced wood boiler definition.

    Ask the seller or installer to confirm it qualifies.

  2. Buy it on or before June 30, 2027.

    The exemption applies at the sale; the sales and use tax isn't charged on qualifying advanced wood boilers.

Forms and instructions32 V.S.A. § 9741, Sales not covered · 32 V.S.A. § 9701, Definitions (sales and use tax) · Clean Energy Development Fund, Funding Opportunities

Stacking

Use it with

You can get these too.

  • Parts of Vermont

    Windham County Wood Heat Incentives for Income-Qualified Homes

    Up to $15,000 back

    Low- and moderate-income Windham County homeowners can get $12,000 or $15,000 toward a central pellet boiler or furnace, or 100% of the cost of a new cord wood or pellet stove and needed chimney repairs (up to $6,000-$8,000), from Vermont's Clean Energy Development Fund.

    Checked Oct 28, 2026

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Sales Tax Exemption for Advanced Wood Boilers pay?

Sales of advanced wood boilers are exempt from Vermont's 6% sales and use tax.

What’s the deadline?

Apply by June 30, 2027.

Can I combine it with other rebates?

Yes, with Windham County Wood Heat Incentives for Income-Qualified Homes. See Use it with.

Is it still available?

Yes. It was open when we last checked, on October 26, 2026.

References

Sources

This page is built from these official pages, run by the program itself.

  1. 32 V.S.A. § 9741, Sales not coveredlegislature.vermont.gov · Read Oct 26, 2026 · Re-checked monthly
  2. 32 V.S.A. § 9701, Definitions (sales and use tax)legislature.vermont.gov · Read Oct 26, 2026 · Re-checked monthly
  3. Clean Energy Development Fund, Funding Opportunitiespublicservice.vermont.gov · Read Oct 26, 2026 · Re-checked weekly

When one of these pages changes, we re-check this page against it.

Report a problem with this page

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