Take Advantage of Tax Credits for Energy Efficient Water Heaters This Year!
A couple weeks ago we wrote about the federal tax credits that are available for newly-installed, energy-efficient HVAC systems. What we didn’t mention in that post is that these tax credits are also available for energy-efficient water heaters! So let’s take a look at why you should consider installing an energy-efficient water heater and the details about the 2013 tax credits!
What are the benefits of installing an energy-efficient water heater?
Before we talk about the water heater tax credits, let’s first discuss how you can benefit from installing an energy-efficient water heater. According to the EPA, water heating can account for 14%-25% of the energy that’s consumed in your home. Given the fact that your water heater is likely consuming nearly a quarter of your home’s energy, you can really cut back on your energy bills by installing a unit that consumes less energy.
By consuming less energy, you’re also helping out the environment because your home will reduce the demands for the fossil fuels that are required to generate heat. That’s the whole idea behind the tax credits in the first place!
How does an energy-efficient water heater qualify for these tax credits?
In order to qualify for the 2013 tax credits, the water heater must have been installed in an existing home that is your primary residence sometime in 2012 or 2013. The credits, which expire on December 31, 2013, are available for water heaters that meet the following qualifications:
- Gas, oil or propane water heaters: Must have an Energy Factor of at least 0.82 OR a thermal efficiency of at least 90%. The credit is for $300.
- Electric heat pump water heaters: Must have an Energy Factor of at least 2.0. The credit is for $300.
If you have any questions about the tax credits available for energy-efficient water heaters, or if you’d like a plumbing system serviced or installed in your home, contact Tiger, your Glen Carbon plumbing, heating and air conditioning company.
photo credit: JD Hancock via photopin cc