Federal Tax Credits for Tankless Water Heaters

On February 17, 2009, President Obama signed The American Recovery and Reinvestment Act of 2009, making great changes to the Emergency Economic Stabilization Act of 2008.

Under the new Stimulus bill:

• Tax credits previously expiring in 2009 will now be effective until December 31, 2009.
• Tax credits have been increased from 10% to 30%.
• Instead of limiting the tax credits to a specific dollar amount (ex: $300 for tankless water heaters), tax credits are up to 30% of the cost.
• The maximum credit has been raised from $500 to $1500; however some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1500 maximum.

Tax credits are available to consumers for 30% of the cost, up to $1500, in 2009 & 2010 (for existing homes only) for:

• Gas Tankless Water Heaters (non-solar, non-electric) placed into service before December 31st, 2010
• Water Heaters
• Windows and Doors
• Insulation
• Roofs (Metal & Asphalt)
• HVAC
• Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:

• Solar Water Heaters
• Solar Panels
• Geothermal Heat Pumps
• Small Wind Energy Systems
• Fuel Cells

How to get your tax credit:

• Choose a qualifying tankless water heater (see list above) that suits your needs.
• Manufacturer’s Certification Statement* is required.
• Save your receipts and Manufacturer’s Certification Statement for tax purposes.
• Use IRS Form 5695.
• Improvements must be “placed into service” (this generally refers to the installation, not the purchase) within the specified dates.

See the DSIRE database of state incentives, or contact your state energy office or local utility service providers for more information about tax credits and rebates in your area.

How Tankless Water Heaters Work

A tankless water heater is the perfect solution for those who want hot water and to save money. Tankless water heaters, which are also called instantaneous or demand water heaters, are becoming extremely popular these days because of their efficiency. Cold water travels through a pipe into the water heater and is then heated by an electric or a gas-fired element. As a result, hot water is instantaneous, and you don't need to waste your time waiting for the water to warm up. These electric water heaters can also simultaneously produce and supply endless streams of hot water to multiple outlets without the hassle of temperature fluctuation.  These units are so popular that even the U.S. Department of Energy recommends them.

Federal Tax Credits for Tankless Water Heaters is brought to you by http://www.heater-home.com

Comments

[Paula]

We looked into having a tankless water heater installed when we built our geo-thermal heated, energy saving home 2 years ago. Unfortunately we had to decide against it. We are on hard well water that is has to be softened. People looking at the tankless water heater option should be aware of the type of water they have. High amounts of mineral deposits in your water and/or chlorine can damage the heating elements and render your heater useless and very expensive to repair and/or replace.

[Emily from www.AbleAir1.com]

Tankless water heaters are highly efficient, save space, and lower energy bills (especially when you consider that 30% of a home's heating costs go towards heating water). They are a great investment and we highly recommend them. However, be aware that there is a big difference in quality among the different brands. Our company in Virginia, AbleAir-1, will only install Navien and Rinnai tankless heaters because we have found the quality is so much better. For instance, with other tankless heaters, if you are only using a trickle of hot water, it's not enough pressure for the tankless heater to turn on (so you will have cold water). With the Navien & Rinnai, you can have hot water even if you only want a trickle. There are other small but meaningful differences. Hope this will help people!

[Michael]

This is an excellent opportunity to reflect on the reduction of utility payments is due to the use of such heaters. This site ( thetanklessheaters.com ) has a calculator that helps you find the right options you want the water heater.
Good luck.

[Michael]

Excellent news. Thank you for the information. I am very glad that I learned about it in time. Do you mind if I'll post it on your site http://thetanklessheaters.com with a link to you?

[GARAGE HEATERS]

Naturally, electric heaters seem more suited to certain parts of the home over others. If you’re looking for a simple heater,

that is quick to turn on and heat up a room then you may find this heater is perfect for you. Thanks so much for nice work....

[plumbing]

Heating water usually takes up around 15% of your monthly household spending budget. You have to look for a water heater that has the ability to heat effectively while consuming less energy.

[Laura]

Thank you for all the information. Tankless water heaters are loaded with many advantages. They are very efficient, save space, and lower your monthly energy bills. With Rinnai Tankless Water Heater you can have hot water more efficiently and the installation process is very simple…

[Jasua]

I am impressed by this blog, it increases my knowledge thanks for giving out this informative blog. To get affordable and efficient hot water solution, I can suggest you to visit: http://www.aboutwaterheaters.org/50_gallon_electric_water_heater.html

[Jasua]

I'll continue to be a regular reader of this blog. There are a lot of other blogs that are not as fascinating as this one. Regards: http://www.aboutwaterheaters.org/50_gallon_gas_water_heater.html