Tankless Water Heater Tax Credit
For
example, the Residential Renewable Energy Tax credit will help fund up to 30%
of a major home renovation, such as installing solar panels to power your home.
The Home Energy Efficiency Improvement Tax Credit provides up to $1,500 for
home improvements that increases a home's energy efficiency. Amongst other
things, this tax credit covers upgrades in your appliances - including your
water heater. Traditional tank heaters consist of an astounding 14 - 25% of
your home's total energy consumption.
Non-solar
tankless heaters are one of the appliances covered. How to Apply for the Tax
Credit. You'll need an IRS Form 5695 to fill out and submit with your 2009
taxes. On your standard IRS 1040 form, you'll claim the credit on line 52.
You'll also want the Manufacturer's Certification Statement - a signed
statement that certifies the product qualifies.
A
tankless water heater is much different thank your typical
"tank-style" water heater. As its name implies, tankless heaters heat
the water while it's going through a series of pipes in the unit. Tankless
water heaters are available in gas and electric varieties. Gas heaters do the
same thing except for through a gas burner. There are distinct advantages to
both electric and gas tankless heaters.
The
incentives available can be in the form of a tax credit, rebates, or both.
Unfortunately, a federal tax credit expired in 2011, but there still are
credits for other green energy heaters, including geothermal heat pumps and
solar water heaters. That said, many states offer credits for tankless heaters,
including Oregon and Washington. State rules on qualification will vary, but
for reference, the old federal rules to qualify for tax credits are as follows:
A 2.0 energy factor is the minimum for an electric
heat pump heater. An instant rebate is claimed immediately when you
purchase the heater but the tax credit is one that gets claimed on your income
tax forms when you file your yearly return. If you are one of those people in
the 30 percent tax bracket, normally your income tax would reduce 30 percent of
what the tax deduction is valued at. But, 100 percent of the amount is reduced
on your federal income tax with the tax credit.
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2 comments:
Hi. your article fanttastic. thanks in informahie.....
:Solar Water Heaters
Tankless water heater have advantages such as easy maintenance and worry free of cleaning for tank in case grime or calcium sets inside.
Tankless water heater tax credit
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