Which types of water heaters qualify for tax credit?

There are currently three types of water heaters that qualify for the tax credit for energy-efficiency:

- Whole house tankless water heaters;

- Solar water heaters;

- Electric heat pump water heaters.

To qualify for the tax credit water heater must have:

- Energy Star designation;

- Manufacturer Certification Statement.

Water Heater FAQs:

FAQ – Do any high-efficiency gas storage water heaters qualify for the tax credit?

A – No. Only tankless water heaters, solar, and electric heat pump types qualify for the tax credit for energy-efficiency.



FAQ – Do small tankless water heaters qualify for the tax credit?

A – No. The minimum approved flow is 2.5 GPM over a 77 degree rise.



FAQ – If I install the water heater myself, can I add the cost of my labor to the total price for calculating the tax credit amount?

A – No, but check http://www.energystar.gov/ before filling out your tax return to make sure the rule hasn’t changed.