If you're looking for a way to deduct a bit from your taxes this year, you'll find that upgrading your water heater to a tankless one will allow you to benefit from the tankless water heater tax credit!
Back in 2013, President Obama passed legislation that provided tax benefits to those who upgraded their home appliances to more energy efficient models.
Any cooling, heating, and/or water heating equipment PURCHASED BETWEEN 2011 AND 2013 qualified the homeowner for a tax rebate if the appliances purchased were energy-efficient.
The tax credit included:
* A 300 rebate for those who installed a tankless gas heater with an Energy Factor rating of no lower than 0.82, or a Functional Temperature rating of no less than 0.92.
* A 300 rebate for those who installed a heat pump water heater with an energy factor rating higher than 2.0.
* A 150 rebate for those who installed high-efficiency gas furnaces with an Annual Fuel Utilization Efficiency (AFUE) rating of no less than 95.
* A 150 rebate for those who installed high-efficiency gas boilers with an AFUE higher than 95.
* A 300 rebate for those who installed a high efficiency central heating/cooling unit that meets the highest tier of efficiency that was established by the CEE (Consortium for Energy Efficiency).
* A 300 rebate for those who installed a high efficiency electric heat pump that meets the highest tier of efficiency that was established by the CEE.
Anyone who installed one of these new appliances before December 31, 2014, was able to benefit from these tax credits and rebates.
HOWEVER, AS OF JANUARY 1, 2015, THESE TAX CREDITS/REBATES ARE NO LONGER VALID.
If you were to purchase an energy efficient water heater or central cooling unit, you would no longer be eligible to receive the tax rebates thanks to the fact that the deadline has passed.
TAX CREDITS/REBATES FOR SOLAR AND GEOTHERMAL APPLIANCES
If you still want to obtain a tax credit or rebate upon the purchase of a new appliance for your home, you will find that the government still offers the credit for a number of appliances:
* Solar water heaters
* Photovoltaics (solar panels collected energy)
* Fuel Cells (using hydrogen and oxygen to create energy)
* Wind-powered devices
* Geothermal heat pumps
* Fuel cells using renewable fuels
* Any other solar-electric technologies
The deadline for the tax credits or rebates has been extended to December 31, 2016, so you have until the end of 2016 to install your appliances and receive the rebates.
Only those installing these systems in their homes (residential) will be eligible to apply for the rebates; companies (commercial) that install these systems are eligible for a different type of tax break/credit.
WHY YOU SHOULD BUY ENERGY EFFICIENT APPLIANCES ANYWAYS
Even if it's too late for you to benefit from the tax credit/rebate for your tankless water heater or energy-efficient appliance, it's always a good idea to spend a bit more and get one of these low-energy appliances. Why is that?
* YOU SPEND LESS EVERY MONTH -- Even if you can't apply for the 300 tax rebate, imagine how much lower your electric or water bills will be with a tankless water heater. You will only heat up the water as you need it, and you'll end up cutting way back on your energy usage.
You may end up using a bit more water, but in the end, your costs will be much lower. The same is true for all appliances with a higher Energy Factor rating. The more energy-efficient the appliances are, the less energy they will need to do their job.
* THEY LAST LONGER -- Manufacturers have to invest more into the design and construction of their energy-efficient models, as that's the only way they will be able to reduce energy waste and usage.
This means that the energy-efficient appliances often have fewer problems than the regular appliances.They tend to break down far less often, and they work a lot better. You'll find the average lifespan of an energy-efficient appliance is at least a year or two longer than your regular appliances.
* YOU'RE DOING YOUR PART TO PROTECT THE EARTH -- Even if you do end up spending more money on your energy-efficient appliance, why not look at it as an investment into your future and that of your children?
If everyone in the world did their part to reduce their carbon footprint and reduce energy waste, we could repair a lot of the damage that has been done to the planet. Buying energy-efficient appliances helps you to shrink your carbon footprint and will be your small way of helping to protect the planet.
* THEY'RE MORE EFFICIENT -- Not only do these energy-efficient appliances use less energy, but they will often do the job much more efficiently than their counterparts. For example, an energy-efficient fridge has less run-off of cold air, thanks to the energy-efficient design.This means that all of the cold air stays trapped in the fridge, where it keeps your food cold with far less effort.
Energy-efficient water heaters heat up the water with as little energy used as possible, and reduces the amount of heat run-off when the water sits in the tank. You'll find that going the energy-efficient route is always more effective!
If you're looking into purchasing new appliances, it's always the smart play to go with energy-efficient models. You may not qualify for a tax rebate (unless you buy solar or geothermal appliances), but you'll end up with a higher-quality appliance that will work better for years to come.
How can you find the energy-efficient models? Easy:
* LOOK FOR THE ENERGY STAR LABEL ON THE OUTSIDE OF THE APPLIANCE.
* LOOK FOR THE TAG THAT DISPLAYS THE ENERGY FACTOR RATING. HIGHER IS ALWAYS BETTER
Be a smart shopper and save money in the long run while doing your part to save the planet!
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