June 2, 2009: Purchasing an efficient natural gas tankless water heater can do more than save homeowners money on energy bills; it can now save homeowners money come tax time. Under the federal government’s new stimulus bill, homeowners are being offered a tax credit up to $1,500 - or up to 30 percent of purchase and installation of a natural gas tankless water heater.
Signed by President Obama, February 17, 2009, “The American Recovery and Re-investment Act of 2009” highlights multiple revisions to the 2008 energy efficiency tax credits, including:
- The tax credit has been raised from 10 to 30 percent
- Tax credits set for a specific dollar amount have been converted to 30 percent of the cost
- Tax credits previously effective for 2009 have been extended to 2010
- The maximum credit has been raised from $500 to $1500 for the years 2009 and 2010
There is certain ENERGY STARÒ and governmental criterion that water heaters must meet to qualify for tax credits. For instance, the appliance must have an Energy Factor greater than or equal to .82 or a thermal efficiency of at least 90 percent to qualify. The unit must be “placed in-service”, or ready for use, from January 1, 2009 to December 31, 2010 at the principal residence of the taxpayer.
There is no upper or lower level limit on income and only existing homes are eligible. Homeowners must save receipts, as well as the manufacturer certification statement, to obtain the credit. The 2009 IRS Form 5695 can be completed and submitted with 2009’s taxes. This form is not yet available.
Benefits of new natural gas technologies go beyond the IRS- they also have a significant impact on the environment. For example, when just one home switches their non-gas water heater to a natural gas tankless, it eliminates 3,000 plus pounds of carbon dioxide from the atmosphere each year. Although the natural gas tankless water heater may cost slightly more to purchase than some non-gas models, most Florida gas utilities offer up to a $525 cash rebate to offset the difference. Factor in an endless supply of hot water on demand (rather than storing and constantly reheating hot water in a tank) with monthly energy savings and natural gas tankless water heaters quickly make up for their initial cost.
“The new federal tax credits are a great added incentive for homeowners to install natural gas tankless water heaters,” agrees Mike Romano, manager of technical applications for TECO Peoples Gas. “Homeowners can get hot water on-demand, save space and do something good for the environment. It’s definitely a winning scenario for everyone.”
Energy Conservation Programs and rebates vary by city and utility. Homeowners can check with local governmental contacts for additional incentives or visit FNGA.com and GetGasFL.com to learn more about natural gas.
The Florida Natural Gas Association (FNGA) is non-profit organization that promotes and encourages the growth of the natural gas industry in the state of Florida. It also seeks to protect the interests of the industry, its members and consumers. Our members include distribution companies, transmission, gas supply marketers and affiliate members. With a membership of more than 100 companies, FNGA represents every segment of the natural gas industry."
For more information, please contact Jenna Bernardo, FNGA staff member, phone. (321) 779-1010,
jenna@mtninc.com.