2011 Federal Tax Credits For Energy Efficient, Energy Star® Water Heaters
If your old water heater is in need of replacement, replacing them with a new, energy efficient conventional or tankless water heater unit will save you money every month throughout the year. Chicago area residents can also save money on the purchase cost of new water heater systems by taking advantage of 2011 federal tax credits on new, energy efficient water heaters. The rebates vary depending on the type and efficiency of the unit, but can cover 10% of cost up to $500 or a specific amount from $50 – $300.
To quality for these savings you must purchase your new water heater before December 31, 2011. For more information on federal energy tax credits for new, energy efficient furnaces, visit:http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.
2011 Changes to Federal Tax Credits
Federal tax credits on qualifying water heating equipment have been modified and extended through December 31, 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This program differs from the program effective in 2009-2010 in the following ways:
The maximum amount an eligible homeowner may receive in tax credits for purchasing qualifying products, whether those purchases are in the form of upgraded insulation, windows, HVAC, water heaters equipment or other eligible improvements, will be reduced from $1,500 to $500.
The $500 cap is reduced by the total amount of residential energy property credits a homeowner has claimed for purchases between 2006 and 2010. If you have already claimed credits of $500 or more from improvements made prior to 2011, you will be unable to claim new credits for improvements made during 2011.
The credit is no longer 30% of qualified residential energy property costs (including labor), but is now equal to an amount not to exceed:
The State of Illinois is not offering energy efficiency rebates for home heating or water heaters at this time.
ENERGY STAR® Rated Water Heaters
With water heating accounting for 14%–25% of the energy consumed in the average Chicago area home, choosing an efficient model can have a significant impact on your energy costs.
Gas, oil, propane and electric heat pump water heaters with an Energy Factor greater or equal to 0.82 OR a thermal efficiency of at least 90% can quality for a $300 tax credit.
Remember, the most important day in the life of your furnace or water heater is the day it’s installed. M/R Plumbing will help you choose right energy efficient furnace or water heater for your family’s needs and budget. With a professional installation you will be comfortable in knowing that your new furnace or water heater will provide years of efficient, trouble free service.
