Getting Tax Credits For Saving Energy
Homeowners looking to cut their tax bills may want to rethink their water heaters. A recently signed law allows people to take as much as a $300 tax credit if they install a tankless water heater in their house.
The new tax credit is meant to encourage U.S. residents to better manage their energy consumption through the use of more efficient technology. Switching to such technology carries the added benefit of reducing utility bills overall even after the tax credit has expired.
In the case of water heaters, that means using models that offer a continuous supply of hot water while reducing energy use.
For instance, Bradford White EverHot tankless water heaters use efficient technology to provide hot water instantly. The water heaters use a series of modulating gas burners that only operate when there’s a demand for hot water. The Energy Factor (EF) of the heaters ranges from 0.82 to 0.87-comfortably above the new energy bill’s minimum tax credit-qualifying requirement of 0.80.
“Tankless water-heating technology may not be the best choice in all water-heating applications,” said Bruce Carnevale, vice president of sales at Bradford White Corporation. “However, recent improvements in tankless water heating designs have made them an important option to the energy-conscious consumer. One of the barriers to consumer acceptance of tankless water heaters has been their high initial cost, relative to traditional tank-type water heaters. But the $300 tax credit will help to reduce the cost differential.”
Additional tax incentives exist for homebuilders who utilize the new technologies and also for commercial applications, whether the building is new or under renovation. The tax credit will run through Dec. 31, 2007.