Energy Star Tax Credits for Plumbing and Heating

With times being a little tough now, Energy Star is working in conjunction with the Federal Government to bring to homeowners a Federal Tax Credit for Energy Efficient products that are purchased to make your home more cost effective. Under this tax credit homeowners can receive a tax credit at 30% of the cost of these items up to 1,500 in 2009 and 2010. This only applies for existing homes only.

The $1500 is the maximum total amount that you can claim for any of the following products that are placed in service by December 31, 2016. This date only covers Solar Water Heaters, Geo-Thermal Heat Pumps, Solar Panels and Non Solar Water Heaters. These products have to have a Manufacturers Certification Statement to Qualify. These home improvements must be made in 2009 and must be claimed on your 2009 tax returns.

This tax credit was designed to give homeowners a break on their taxes for making their homes more cost effective. By installing more energy efficient products in your home such as Water Heaters (Solar and Non Solar) and Geothermal Heat Pumps. You are now able to lower the cost on your energy bills, which is what the Energy Star Program is all about. All you have to do is follow the guidelines and you can get your 30% tax break on next years taxes. Let’s take a look where some of these tax breaks can help you in the home improvement area of Plumbing and Heating

Federal Tax Credits for Water Heaters (Non Solar)

How do I qualify for the Federal Tax Credits for a new Water Heater?

Under the Energy Star Federal Tax Credit, homeowners looking to purchase a new water heater in 2009 or 2010. These water heaters can either be Gas, Oil or Propane. They must have an Energy Factor of .82 or a thermal efficiency of at least 90%. One of the best non-solar water heaters is PowerStar Tankless Water Heaters. These tankless water heaters are perfect for energy efficiency, they offer at least a 90% thermal efficiency and they will save you money on your energy bills because they do not store hot water, they only supply hot water when you need it.

Another great product are the Noritz Tankless Water Heaters, these water heaters have a .84 energy factor and they are wall mounted units that can be installed anywhere. Like the they also supply hot water on demand. Check out the reviews on these energy efficient water heaters and more.

Does it matter what brand of water heater I purchase?

Well, not all of the Energy Star Gas storage and condensing water heaters will qualify. All Energy Star gas tankless models will qualify but there is a criteria for these products that homeowners have to follow in order to qualify for the tax credit. If you are looking for a list of water heaters that qualify, here are just a few GE, MPI, AO Smith, Rheem, Rinnai and Takagi and much more. If you purchase a Gas Tankless Water Heater you can qualify for $ 300 on your 2009 Federal Tax Return.

Federal Tax Credits for Geo-Thermal Heat Pumps

How do I qualify for the Federal Tax Credits for a New Geo-Thermal Heat Pump?

In order to qualify for a Federal Tax Credit for purchasing a new Geo-Thermal Heat Pump you must follow the criteria set by Energy Star. To qualify for the tax credit the Geo-Thermal Heat Pump must have the following specifications. If the unit is a Closed Loop Unit then it must have EER or 14.1 and a COP of 3.3. If the unit is an Open Loop then it must have an EER of 16.2 and a COP of 3.6. If the unit is a Direct Expansion then it must have an EER of 15 and a COP of 3.5.

You will receive 30% tax credit and you must file a 5695 IRS Form in order to get the tax credit. In order to qualify the heat pumps must be placed into service by December 31, 2016. One of the qualifying Geo-Thermal Heat Pumps that you can look at is the Carrier GT-G Geo-Thermal Heat Pumps. They meet the requirements and they are designed to help you save money.

Will the Tax Credit really help me save money?

Not right away, you may have to spend some money upfront in order to qualify for the tax credit but over time you will start seeing the money you will save on the monthly energy bills and soon the savings will start paying for the product itself. You have to keep in mind that when you purchase a Geo-Thermal Heat Pump that size and installation must be 100% accurate. If you get a unit too small then you will compensate by using more energy and if you a unit larger than what you need, you will use too much energy and you won’t end up saving anything.

Federal Tax Credits for Solar Water Heaters

How do I qualify for the Federal Tax Credits for a New Solar Water Heater?

In order to qualify for a tax credit on a Solar Water Heater is a bit more complex than that of the Non Solar Water Heater. At least half the energy that is generated from the solar water heater has to come from the sun. The tax credit must be used to heart water to the home, items such as swimming pools and hot tubs are not eligible for the tax credit. The Solar Water Heater must be certified by the Solar Rating and Certification Corporation. You will receive 30% of the cost of the Solar Water Heater as your tax credit.

What are the best brands I can purchase to qualify for the Tax Credit?

According to the Energy Star Program the best brands to buy are the EnerWorks and the Velux. These brands have many models to choose from that qualify for the Tax Credit. You will want to make sure that you can estimate properly the capacity of the Solar Water Heater properly. If your estimation is not correct you may end up with the same issues as the Geo-Thermal Heat Pumps, if you buy a unit to small you will over compensate and if you buy too big you are wasting energy. If you are not sure about what you need, you can get an estimate and a recommendation from your local plumber.

Now is the time if you are looking to replace your Water Heater or maybe install a new Solar Water Heater. You can start looking around at the best products and see which style would work best in your home. It is important to follow these guidelines in order to receive the tax credit. You can read more about these tax credits and how you can make your home more energy efficient by checking out the Energy Star website.

On the website you will find some great information including how to purchase the right equipment. They offer money saving tips and as well as a list of some of the products that qualify and even where to find some really great deals. Now is the time to not just make the change and stop spending a lot of money on your energy bills but get a tax credit also.