Did you know that the U.S. Government offers a tax credit and/or rebate for those who switch out their water heaters to new, energy-efficient models? If you’re looking for a way to deduct a bit from your taxes this year, you’ll find that upgrading your water heater to a tankless one will allow you to benefit from the tankless water heater tax credit.
With the introduction of tankless water heaters several years ago, hot water usage has become much more convenient, as well as more energy efficient. Tankless water heaters manage to deliver more consistent temperatures and a higher volume of water while managing to use less energy than other tank-style water heaters do. Unlike conventional tank units, tankless heaters are only active when they are needed, and in turn, saving an average of 45 percent on consumer's energy bills.
Aside from saving costs on your utility bills by going tankless, you can gain a credit on your income taxes for purchasing an energy efficient tankless water heater, as long as the water heater was installed by December 31 of the previous year. The tax credit is based on the amount of energy saved above standard models.
Rebates exist not only for newly constructed homes, but also for replacement jobs during remodeling of a current home. Keep in mind that the type of installation for your tankless water heater may impact the rebate amount as well. You can look up what kinds of energy rebates exist for your state at energy.gov .Some may be concerned about the typically higher up-front costs of a tankless water heater versus a tank model, however, the rebates are an easy way to narrow the difference of this cost.