Save money on your home energy expenses and on your taxes by switching to a tankless natural gas water heater. We mentioned saving money on taxes for having a solar water heater in an earlier blog article. Here are some other ways to save money on your income taxes by making your home more energy efficient.
Energy Efficient Water Heaters
You don’t have to get a solar energy system to get tax discounts in 2016. Electric and gas water heaters with an Energy Star certification qualify for a tax credit of $300. The tax credit is effective through December 31, 2016. In order to be eligible, your Energy Star water heater must be installed between January 1, 2011 and December 31, 2016.
What is an Energy Star Qualified Water Heater
You’ve probably seen the Energy Star logo before on all kinds of products.
Energy Star is a program of the US Environmental Protection Agency. It partners with 18,000 private and public sector organizations to inform consumers of products that follow energy-efficient solutions.
Energy Star Qualified water heaters can be gas condensing, heat pump based, gas storage, solar, or tankless water heaters. According to the Energy Star website, electric storage tank water heaters and even electric tankless water heaters can not earn an Energy Star qualification. Electric tankless water heaters are more energy efficient than standard water heaters, but not “better enough” to qualify for the Energy Star rating. The best electric tankless water heaters will save you about 8.7% per year.
You can read more about the different types of Energy Star qualified water heaters on the Energy Star Qualified Water Heaters page here. You can also call Henry Plumbing ask for one of our plumbers to help you select an energy efficient water heater for your home.
How to Get Tax Credit for Your Energy Efficient Water Heater
If you get an Energy Star rated water heater, or you had one installed between 2011 and 2016, you can claim your tax credit by filling out an IRS Form 5695 (don’t they give these forms the best names!). You can see both the form 5695 and its instructions page here.