Tankless water
heater tax credit
Tax break, rebate and incentives
Attention
American homeowners, the tankless water heater tax credit is back. The
Energy Policy Act of 2005, passed by President Bush, enacted the first
federal tax credit for eligible gas tankless hot water heaters.
But
the tankless water heater tax credit expired in 2007. With the 2009
Emergency Economic Recovery and Stabilization Act signed into law by
President Obama, the tax credits have been reenacted, extended and
increased.
How it works
The
tax credit isn't rewarded at the actual time of purchase. Instead the
purchase is claimed on your federal income tax. Then the tankless water
heater tax rebate is rewarded to you, increasing your tax refund or
otherwise decreasing your yearly tax payment.
Tankless water heater tax incentives as of 2009
- It's extended until December 31, 2010.
- The credit percentage has been increased from
10% up to 30%.
- The original maximum tax rebate was $500, the
2009 maximum rebate has been increased to $1,500.
Requirements
- All energy star certified gas tankless hot
water heaters qualify.
- Electric tankless units do not qualify, gas
powered tankless units can be powered by either natural gas or propane.
- Tax credits only apply for existing homes.
- Purchase and installation must be preformed by
December 31, 2010.
- Proof of purchase and installation costs are
required for tax purposes.
Local tankless water heater rebates
It's
important to note that a federal tax credit is not a rebate. Mail in
rebates and instant rebates are redeemable immediately after purchase.
With
that said, keep in mind that several local utility providers (in
partnership with manufactures) offer cash rebates for the
purchase of
several qualified tankless hot water heaters.
It's a good idea to check with
your local utility provider and coordinate your purchase in order to
combine your cash rebate with your tankless water heater tax
break.
More on tankless hot water heaters
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