Federal Tax Credits for Energy Efficient Water Heaters

Congress has extended the tax credit available to purchasers of highly efficient water heating products for another year. For 2011, consumers can take a 10% tax credit, up to $300, for qualifying water heaters. This extension runs until the end of the year.

The tax credit cap has been reduced from $1,500 to $500 ($300 for water heaters). This cap is on the total amount of credits a homeowner can claim from 2006 through 2011. If homeowners have already claimed over $500 worth of credit through those years, they would be unable to do so for 2011.

For more information, go to www.energystar.gov.

Qualifying Water Heaters
All natural gas, propane gas, or oil water heaters with an Energy Factor rating greater than, or equal to 0.82, or a thermal efficiency rating of at least 90%, qualify for the above tax credit.

Go to Manufacturer's Certification Statement for qualifying models.

Examples
If a homeowner had a qualifying water heater installed that cost $3,000 (installation and water heater), then the homeowner could claim a tax credit
of $300.

If a homeowner had a qualifying water heater installed that cost $5,100 (installation and water heater), then the homeowner could still only claim a MAXIMUM tax credit of $300.

As always, please contact the Product Department at 1-800-523-2931, if additional clarification is needed.