Virginia Code 58.1-609.10 18 provides that beginning July 1, 2007, and ending July 1, 2012, the retail sales and use tax does not apply to "multi-fuel heating stoves used for heating an individual purchaser's residence. Multi-fuel heating stoves are stoves that are capable of burning a wide variety of alternative fuels, including, but not limited to, shelled corn, wood pellets, cherry pits, and olive pits." Boilers and furnaces that use pellets or other alternative fuels are also exempt from sales tax, but not boilers or stoves that burn wood. The fuels used in the stoves are still taxed.

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Incentive specifics available here:
https://law.lis.virginia.gov/vacode/title58.1/chapter6/section58.1-609.10/