If you installed a new energy-efficient water heater in your home in 2011, you may be entitled to a credit on your income taxes under the U.S. government’s Consumer Energy Efficiency program. Water heating can consume as much as 25 percent of the energy used in your home, so a high-efficiency model will use much less energy while saving you money on your annual utility costs.
Even if you’ve just been thinking of buying an energy-efficient water heater, it’s not too late to do so and benefit from the tax credits. The credits for non-solar high-efficiency water heaters are good until December 31, 2011.
The water heater tax credit is 10 percent of the cost of the equipment, up to $500, or a particular amount ranging from $50 to $300. The equipment must be purchased for an existing home, and that home must be your principal place of residence. These tax credits cannot be applied to new construction or rental units.
Gas, oil and propane water heaters qualify for credit of up to $300. The water heater must have an energy factor — a measurement of the overall efficiency of water heaters and other appliances — of 0.82 or greater and a thermal efficiency of at least 90 percent.
Electric heat pump water heaters also qualify for the $300 tax credit. They must operate with an energy factor of 2.0 or greater.
To apply for your tax credits for units placed in service in 2011, you must file the 2011 version of IRS Form 5695 with your 2011 federal income taxes by the IRS tax filing date of April 15, 2012. The latest version of Form 5695 will be available from the IRS in early 2012.
Team Bob’s Heating Cooling Plumbing has been a reliable source of HVAC sales and service in Grand Traverse County and the five surrounding counties for more than three decades. Contact us todayfor information about the water heater tax credit and for help finding the right units that will qualify.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information about tax credits and other HVAC topics, download our free Home Comfort Resource guide.
Team Bob’s services Traverse City, Michigan and the surrounding areas. Visit our website to see our special offers and get started today!
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