Up To $1500 Federal Tax Credit

Water Heaters

Under the Emergency Economic Stabilization Act of 2008, the federal government offered tax credits for highly efficient, energy-saving water heating products. In February of 2009, President Obama not only extended these tax credits through 2010, he also increased their amount from 10 percent to 30 percent of the purchase and installation price of a water heater, with a cap of $1,500 per home. If you purchase an eligible water heater on or before December 31, 2010, you can claim a federal tax credit equal to 30 percent of the purchase and installation cost of the water heater, capped at $1,500 per home.

Do New Homes with an Energy Star®-Rated Water Heater Qualify?

New homes with an eligible water heater do not qualify since energy-efficient equipment is already in place. However, if you decide to purchase an eligible tankless water heater to provide on-demand hot water for your shower or sink, you can still claim a federal tax credit.

Why Tax Credits are Preferable to Tax Deductions

Generally speaking, tax credits are preferable to tax deductions. A tax deduction will lower your taxable income while a tax credit offers a dollar-for-dollar reduction in what you pay in federal income taxes. For example, assume the government offered a 30 percent tax deduction for certain kinds of water heaters. If you were in the 30 percent tax bracket, your federal income taxes would be reduced by 30 percent of the value of the credit claimed. However, as a tax credit, your federal income tax is reduced by 100 percent of the value of the credit itself.

Rheem Water Heaters and the Federal Tax Credit Program

Rheem offers a wide variety of energy-efficient water heaters that qualify for a federal income tax credit. A number of Rheem water heaters are ENERGY STAR® rated. Rheem has been an industry leader in innovative water heater designs for the following kinds of water heating systems:

• Solar Water Heaters
• Hybrid Electric Water Heaters
• Commercial Water Heaters
• Tankless Water Heaters
• Gas Water Heaters
• Electric Water Heaters

We Are Here to Help You Decide What Water Heater Works Best For You

There are a number of issues to take into consideration when buying a water heater. To learn more about the federal tax credit program and Rheem water heaters, call Public Service Plumbers at 214-363-4477 today, or stop by our Dallas showroom and speak with one of our service representatives.

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