The Federal Tax Credits Blog

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Question: 2008 Tax Deduction for Highly Energy Efficient Hot Water Heater and Furnace?

I purchased a highly energy efficient hot water heater as well as a high efficiency furnace in 2008. Is there anywhere to claim a credit for these two items? It looks like federal forms are only giving credits for solar heating and hybrid vehicles. If you know where to claim a credit for new furnaces and hot water heaters, let me know. Thanks for your timely response!

Answer: There is no credit for these items in 2008. Under the American Recovery and Reinvestment Act of 2009, these are reinstated for the tax years of 2009 and 2010 only.

Sharon Pierce, HRB Sr Tax Advisor V

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Officials offer winterizing, safety tips

With winter weather taking hold this week, it is a good idea to catch up on winterizing, emergency preparedness and home safety.

Polaris High Efficiency Water Heaters – Tax Credit Info

All water heaters use an energy source to heat water. Water which comes into your home from a well or city water system is cold and a water heater uses electric energy or natural gas to heat the water to a temperature of between 120 and 180 degrees Fahrenheit. Most conventional water heaters do this by storing the water in a tank which holds between 40 and 100 gallons of water. The energy source works on a thermostat which turns the energy on whenever the water in the tank falls below a certain temperature. The water is heated whether or not you are using it. Since cold water enters the tank when hot water is removed, the energy comes on more frequently when hot water is in use. Powerstar tankless heaters only heat water as you use it.

If you have ever had the experience of running out of hot water in the middle of your shower, you are aware of one of the drawbacks of tank style water heaters. It takes between 20 and 45 minutes for the heater to heat the water in the tank. If you use all the hot water in the tank, you have to wait for the system to recover and heat additional water. The larger the tank, the less often you will run out of hot water. Larger tanks take more energy to keep the water hot and therefore add to your energy usage and your electric bill. Water heaters that heat water continuously, like the powerstar tankless heater, only use power when you use hot water.

Powerstar electric water heaters can be an excellent supplement to a solar heaters. Solar heaters use storage tanks where the water is heated. Powerstar water heaters are a tankless systems which heat water on demand. If the water from the solar heater is not hot enough, the system will heat the water to the desired temperature with electricity. The heating unit only comes on when the water is not hot enough. The warmer the water entering the system, the less power it will use. Powerstar electric water heaters are energy efficient and will produce a continuous supply of hot water regardless of weather conditions.

The powerstar tankless heater doesn’t use a tank, but heats the water as it enters the house. Tankless heaters provide a steady, continuous source of hot water. The amount of hot water produced depends on the capabilities of the system. Powerstar tankless heaters produce more than two gallons of hot water per minute. Installing a tankless water heater will save homeowners money on an appliance that accounts for a significant percentage of the total energy used in their home.

Los Angeles Plumber Advises Only Weeks Remaining for LA Home Owners to take Advantage of Energy Efficiency Tax Credits

The federal tax credits of up to $1500 on high efficiency tankless water heaters expire on 31 December 2010. Los Angeles plumbing contractors Schuelke Plumbing advises that only weeks remain for LA home owners to upgrade the energy efficiency of their home and claim the credits. (PRWeb December 14, 2010) Read the full story at http://www.prweb.com/releases/losangeles/plumber …

Best tankless water heaters