How to get a federal tax credit on your fireplace

If you are thinking about making your home more energy efficient, you may want to look at your fireplace.

According to Angie Hicks, of consumer group Angie's List,  "A fireplace is typically a central gathering place in the home for most families, but most wood-burning fireplaces lose a lot of the heat out the chimney. Now is a great time to consider updating your fireplace, putting in a wood insert or even a wood-burning stove. The great thing is it may be eligible for a tax credit up to 30 percent off of the cost up to $1,500 if you act before the end of the year."

According to Angie's List, qualifying fireplaces, wood-burning stoves and fireplace inserts can translate into a federal tax credit of 30 percent of the purchase and installation costs, up to $1,500.

According to Angie's List, a standard wood-burning fireplace loses most heat through the chimney.  By installing a wood-burning insert in a fireplace, the heat blows into the room instead.

In the case of vent-free gas logs,  99 percent of energy is sent into the room as heat.  Angie's List says to consider electric if gas is not an option.

Angie's List gives these tips for shopping for a Fireplace:
· Check with your local government center to ensure there are no restrictions or requirements before adding a fireplace to your home.
· There are a number of options for homeowners to choose from, including low-cost prefabricated wood-burning units, personally designed masonry fireplaces and high-efficiency gas fireplaces.
· The main thing you should think of first is what purpose the fireplace is going to serve.
· Ask about installation. Many manufacturers state that a fireplace needs to be installed by a professional.
· With wood-burning fireplaces, you have to build or install a flue pipe going up through the height of the house and out the roof. With gas you have some gas fireplaces you can vent out the wall or that are completely unvented.

If you are not interested in buying, Angie's List says it is important to maintain your current chimney.

Angie's List offers these tips:

· It's important to have your chimney inspected annually and cleaned at least every two years, especially if you burn two short fires a week in the winter. The average inspection and cleaning runs between $140 and $180.

· A professional chimney cleaning will remove deposits of creosote and an inspection will help catch other problems that would otherwise go unnoticed such as the structural integrity of a chimney and what to look for inside the firebox.
· Never let a fire burn for more than a few hours at a time. Burning only dry, well-seasoned hardwoods will help reduce creosote build-up in a wood-burning chimney system.
· Though they don't produce creosote, gas fireplaces should also be inspected regularly, to ensure they're functioning properly and not leaking gas. Homeowners should install a carbon monoxide detector to warn of harmful gases.
· Beware of companies that offer cleaning pricing that seems too good to be true. Fly-by-night contractors tend to come out this time of year. Before hiring, look for individual certification from the Chimney Safety Institute of America. The National Chimney Sweep Guild also offers a company credential in which the company agrees to abide by its code of ethics.
· Many home improvement stores sell inexpensive cleaning logs, but highly-rated chimney sweeps on Angie's List tell us their effectiveness is limited and they can't substitute for an inspection.