President Obama signed legislation that extends and retroactively reinstates the 25C tax credits for high efficiency HVAC and hot water heating equipment that expired in 2011. This bill extends the tax credits to December 31, 2013, for equipment outlined in Section 25C of the Internal Revenue Code. Because they were retroactively instated, any qualified hot water heaters or HVAC units installed after December 31, 2011, will be covered.
The qualified equipment includes gas tankless hot water heaters with an EF of .82 or higher. They are eligible for a $300 tax credit.
If you purchased a Rinnai tankless hot water heater between January 1, 2012 and December 31, 2013 you may qualify for a $300 tax credit. For more information on Rinnai Tankless Tax Credit, you may get more information on how to claim your tax credit by visiting Rinnai's site.
If you purchased an AO Smith High Efficiency Water Heater, you can get more information on how to claim your tax credit by visiting AO Smith's Tax Credit Program page.
Each of these pages contain links to Manufacturer's Certification Statements that will be needed, in addition to your receipt of purchase, to claim the credit. Don't forget to check for local rebates from these pages as you may be entitled to additional credits. In addition, IRS Form 5695 will be needed to claim the tax credit.
For more information about these or other tax credits, please consult a tax professional.
If you were planning on purchasing a new high efficiency hot water heater you've still got time, assuming you're reading this before December 31, 2013. Check out some of the benefits of owning a tankless water heater and contact us for a free estimate today!