Home Improvement Tax Credits for Non-Solar Water Heaters:
Unlike their solar counterparts, non-solar water heaters operate on natural gas, propane or electricity. Here’s what you need to know to see if your water heater qualifies for a federal tax credit.
Am I eligible for a non-solar water heater tax credit?
This tax credit has been extended through December 31, 2021 and you may take advantage of it even if you installed your new water heater before 2020. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- Electric heat pump water heaters qualify for the home improvement tax credit only if they have a Uniform Energy Factor of at least 2.2.
- Natural gas, oil or propane hot water heaters must have a Uniform Energy Factor of at least 0.82 or thermal efficiency of at least 90%.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
More eligibility requirements can be found here. (https://www.energystar.gov/about/federal_tax_credits/2017_non_business_energy_property_tax_credits)
How do I apply for a non-solar water heater tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2019 tax return, file Form 5695 (Residential Energy Credits) here. (https://energystar-mesa.force.com/ENERGYSTAR/s/article/How-Do-I-Apply-for-the-Tax-Credit-1600088463236)
How much can I claim for a non-solar water heater on my tax return?
- You are eligible for a $300 home improvement tax credit if you replace your non-solar water heater with a more energy-efficient model.
Other common questions about non-solar water heater tax credits:
- Does it matter what fuel my water heater uses to get the tax credit? Water heaters that run on gas, propane or electricity are all potentially eligible as long as they meet other tax credit requirements listed here. (https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits)
For even more help, see our website with additional information about Tax Credits as well as rebates from manufacturers. https://schwartzplumbing.com/water-heaters/tax-credits-rebates/
Since 1991, Schwartz Plumbing Company has satisfied residents and businesses throughout the Triangle area. Fully insured, licensed, and bonded, Schwartz Plumbing offers a full range of plumbing services at competitive rates. Our work is guaranteed, and Stuart personally ensures your satisfaction.
Call us Raleigh Area (919) 212-2777 Cary/Apex Area (919) 467-8400
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