Tankless Water Heater Tax Credit of 2009 and 2010 

Your Birmingham Plumbing Company offers Tankless Water Heaters which can earn Federal Tax Credits up to $1500 

Energy Efficient Water Heaters can save you up to 30% - maximum of $1500.00 on your taxes in addition to year-round savings on your energy bill.

The American Recovery and Reinvestment Act of 2009 signed on February 17, 2009, by President Obama has made significant changes to homeowner tax credits for specified energy-efficient home improvements including qualifying, residential water heaters and boilers. Some of the more significant changes include the extension of the tax credit through 2010 and the increase in the total available tax credit from 10% to 30%. 

Homeowners who purchase and install a qualifying tankless water heater or boiler 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.

Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. Improvements made in 2010 will be claimed on your 2010 taxes (filed by April 15, 2011) — use IRS Tax Form 5695. 

For more information on the bill, check out the U.S. Department of Energy website. 

Effective Dates:

January 1, 2009 through December 31, 2010.

What is a tax credit? 

A Tankless Water Heater Tax Credit is not received when you buy the product, like an instant rebate. A Tax Credit on Water Heaters is claimed on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount paid in. 

Tax credits vs. tax deductions. 

In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions – such as those for home mortgages and charitable giving, for example – lower your taxable income. 

If you are in the 30 percent tax bracket, your income tax is reduced by 30 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit. 

For more information on Federal Tax Credits for Energy Efficiency, click here.  Please also check with your local tax consultant for your specific qualifications.

For a list of Tankless Water Heaters on the Federal Tax Credit List - this changes from time to time.  

Call your Birmingham Plumbing Company today, to ask about our Tankless Water Heaters in order to take advantage of this money-saving opportunity.