 |
|
(Your shopping cart is empty)
|
|
|
|
|
 |
The American Recovery and Reinvestment Act of 2009 was signed into law on February 17, 2009. Included are Energy Conservation Incentives for homeowners who invest in energy efficiency upgrades. The recent reintroduction of the U.S. residential tax credit program allows a Federal Income Tax Credit for eligible water heaters. To qualify for the tax credit the water heater must have an Energy Factor of .82 or greater OR a thermal efficiency of at least 90%.
To be eligible, units must be placed into service between January 1, 2009 and December 31, 2010 in the taxpayer’s principle home.
The amount of the tax rebate depends on when the unit was installed.
If installed January 1, 2009 - February 16, 2009 the unit qualifies for a $300 tax credit. During these dates qualifying water heaters had to have a .80 Energy Factor or greater OR a thermal efficiency of at least 90%.
If Installed February 17, 2009 - December 31, 2010 the units qualify for up to a $1,500 tax credit. The water heater and installation costs qualify for 30% up to $1,500. During these dates the qualifications have slightly changed so qualifying water heaters must have a .82 Energy Factor or greater OR a thermal efficiency of at least 90%.
A very important, but confusing dollar limitation. The total tax credit allowed for tax years 2009 and 2010 for a taxpayer is $1,500. This cap is determined by applying the 30% to the total amounts paid or incurred for qualified energy improvements AND qualified energy property expenditures during tax years 2009 and 2010. The $1,500 tax credit is for both 2009 AND 2010 tax years, it does not mean you qualify for $1,500 in each tax year; it is a combined total for BOTH tax years.
If the 30% of the installed costs is less than $1,500 the homeowner can "bank" the remaining available tax credit to be used for other qualified improvements. Any single water heater installation that costs more than $5,000 will immediately qualify for the $1,500 tax credit.
The tax credit amount includes both the costs of the water heater and the installation labor costs of the qualified equipment.
It is also important to remember the tax credit applies towards other qualified improvements such as windows, doors, skylights, storm windows, storm doors, roofing, and insulation. All of these improvements qualify, but a homeowner may only claim $1,500 in total for any improvments during 2009 AND 2010.
For more information, visit the EnergyStar website at http://www.energystar.gov/
|
|
|
|
