Tax Credits / Rebates Tankless Water Heaters

On February 17, 2009, President Obama signed a stimulus bill that made some significant changes to the energy efficiency tax credits. This replaces the original bill signed by former President Bush.

Takagi Tankless Water Heaters

Qualifications: Gas, Oil, or Propane water heater - Energy Factor >= 0.82 or Thermal Efficiency of at least 90%.

Amount: The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.

The maximum credit has been raised from $500 to $1500 for the two years (2008-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1500 maximum.

Qualifying Models: T-H1, T-K3Pro, T-K3, T-K3SP, T-K3OS, and T-M199.

Expiration Date: Tax credits that were previously effective for 2009 have been extended to 2010.

ENERGY STAR CRITERIA: Whole-Home Tankless: Energy Factor >=0.82

Gas Condensing: Energy Factor >=0.80

Rinnai Tankless Water Heaters

Homeowners who purchase and install a qualifying Rinnai tankless water heater between Jan. 1, 2009 and Dec. 31, 2010 will now be eligible for a tax credit equal to 30% of the full purchase and installation price up to a maximum of $1500.

Effective Dates: January 1, 2009 through December 31, 2010.

Water Heater Qualifications: Rinnai tankless water heaters with an energy factor (EF) of 0.82 or greater will qualify for the tax credit.

Tax Credit Amount: 30% of the full purchase and installation price up to a maximum of $1500

Guidelines:

- The Rinnai tankless water heater must be “placed in service” between January 1, 2009 and December 31, 2010. The IRS defines "placed in service" as when the product is ready and available for use.

- The Rinnai tankless water heater must be installed in or on the taxpayer’s principal residence in the United States.

- The tax credit is ONLY available for existing homes.

- The maximum amount that a taxpayer may claim for all qualifying energy efficient home improvements including the purchase and installation of a Rinnai tankless water heater is $1,500 over the lifetime of the credit (2009 & 2010).

- Rinnai tankless water heaters installed in 2008 are not eligible for the tax credit.

*Note: ENERGY STAR qualified high-efficiency gas storage water heaters will not qualify for the tax credit. All ENERGY STAR qualified whole-home tankless and gas condensing models will qualify.