Please see below tax credit information for 2020:
$300 US Federal Tax Credit for Tankless Water Heating Products. Tankless Water Heaters with an energy factor of at least 0.82 OR a thermal efficiency of at least 90% may qualify for a $300 US Federal Tax Credit. Must be an existing home & your principal residence. New construction and rentals do not apply.
$150 US Federal Tax Credit for Condensing Boiler. Condensing Boilers with an AFUE of at least 95% may qualify for a $150 tax credit.
When did this happen?
January 2020: The Non-Business Energy Property Tax Credits have been retroactively extended from 12/31/2017 through 12/31/2020.
What does this mean for you?
If you purchase a qualified Tankless Water Heater or Condensing Boiler between December 31, 2017 through December 31, 2020 you may be eligible to claim the federal tax credit.
How do you claim your Federal Tax Credit?
While ENERGY STAR supplies some information about tax credits, please remember the tax credits are administered by the IRS. To learn more about the tax credit: click here and select the Non-business Energy Property Tax Credits.
You will have to claim the credit using the form below and submitting it with your tax returns to the IRS. To access the tax credit form, click here: IRS Form 5695.
If you have other questions, please contact the IRS at 1-800-829-1040 or click here: IRS.
There are requirements and limitations to qualify for the Federal Tax Credit. In assessing the applicability of the tax credit to your purchase, we recommend that you consult with a tax professional to confirm that you meet all requirements.
What does the Non-business Energy Property Tax Credit Mean?
The Non-business energy property tax credit, in the United States, provides a nonrefundable personal tax credit for Federal income tax purposes, for making a home more energy efficient. (Unlike a deduction, which lowers taxable income, a tax credit reduces the actual tax paid, dollar-for-dollar.) This credit was added to the Internal Revenue Code by the Energy Policy Act of 2005. The non-business energy property credit expired on December 31, 2017, but was retroactively extended for tax years 2018 and 2019 on December 20, 2019 as part of the Further Consolidated Appropriations Act, 2020 (2020 United States federal budget). Further information about the legislation that extended the credit is at IRS.gov/Extenders.