It’s almost tax time, and you know what that means – finding every last deduction!
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
- Roofs (Metal & Asphalt)
- 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