Are tankless natural gas water heaters included in the tax credits?
Any natural gas water heater of at least 90 percent efficiency will qualify for a federal energy tax credit of 30 percent of the installed cost up to $1,500. What is the maximum a taxpayer may claim from all the home improvement energy tax credits combined? The maximum is $1,500 over a two year period over the lifetime of the tax credit (2009-2010). The credit is applied on personal income taxes on primary residences only. It applies to 30 percent of installed costs up to a $1,500 limit. For example, in 2009, a homeowner could use part of the tax credit to buy new windows, then apply the remainder of the $1,500 credit in 2010 to offset the purchase of a high- efficiency water heater. Consumers are advised to check with their tax advisors regarding tax advantages that may be realized by any of these purchases.
