In order to get sweet tax rebate on water heater, make sure you purchase a water heater that is energy efficient. Even if your water heater isn’t on the fritz, you still stand to save big bucks by opting for more efficient model. Gas, oil, propane, and solar water heaters are all game for the tax break. Check Energy Star’s Tax credit list to find the requirements for each kind of heater.
(While shopping --look for the energy star label on efficient water heaters in the following categories: high efficiency gas non-condensing, gas condensing, electric heat pump, gas tankless, and solar.)
Consider natural gas on-demand or tankless water heaters. Researchers have found savings can be up to 30% compared with a standard natural gas storage tank water heater. Additional information about on-demand water heaters can be found at U.S. Department of Energy.
Here’s what is available: tax credit for 30% of the cost of energy-efficient water heater and electric heat pump, up to a life time cap of $1500. This credit is available for 2009 and 2010.
NOTE: The tax credits you earn on all the energy efficient home improvement items such as central air, water heaters, furnaces and hot water boilers, windows, doors, roofing and installation, are cumulative, and capped at $1500.
Be aware: this tax credit applies to primary residence only. Need additional information? Visit Hire it Done!