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On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the Energy Efficiency Tax Credits.
This new bill supercedes a previous bill (The Emergency Economic Stabilization Act of 2008) that was signed into law on October 3, 2008. The changes that have been adopted are as follows:
- Tax credits that were previously only effective for 2009 have been extended to 2010.
- Water heaters must be placed in service starting February 17th, 2009 through December 31st, 2010.
- The tax credit has been raised from 10% to 30% (equipment and installation cost).
- The maximum tax credit amount has been raised from $300 to $1,500 for two years (2009-2010). Also, this $1,500 maximum tax credit is a total of all home improvements that are placed in service, ending December 31st, 2010.
- If a new home is being built, the tax credit cannot be claimed. It needs to be existing equipment that is being replaced.
- Tax credit is for a taxpayers principal residence only.
For more information, go to www.energystar.gov.
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 Bradford White Products for qualifying models.
Manufacturer's Certification Statement
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 $900.
- Cost of installation and water heater ($3,000) x tax credit (30%) = $900.
- This same homeowner still has $600 of tax credit left over for improvements on windows, doors, insulation, roofs, or HVAC equipment.
If a homeowner had a qualifying water heater installed that cost $5,100 (installation and water heater), then the homeowner could claim a MAXIMUM tax credit of $1,500.
- Cost of installation and water heater ($5,100) x tax credit (30%) = $1,530. This is greater than the maximum allowable tax credit, so the homeowner could only claim $1,500.
- This same homeowner has now used up the tax credit and cannot claim any other home improvements.
As always, please contact the Product Department at 1-800-523-2931, if additional clarification is needed.
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