Manufacturer Tax Credit
How it Works
Residential equipment and materials that meet specific standards set by the Department of Energy can qualify for the Equipment Tax Credits for Primary Residences. However, these credits apply only to existing homes and a principal residence. Newly constructed homes or rentals are not eligible.
For this credit, the IRS distinguishes between
Qualified Energy Efficiency Improvements and Residential Energy
Property Costs. “Water Heaters (non-solar)” are a part of Residential Energy Property Costs. All Energy Star-certified tankless water heaters meet the requirements for the Non-Business Energy Property Tax Credit.
Do you have your manufacturer certificate?
To apply, you will need a written certificate that your tankless water heater qualifies for the tax credit.
As soon as the IRS announces an extension of the tax credit, manufacturer certificates are updated and made available on our website
Not sure how to apply for the tax credit from the IRS? You will have to use Form 5695, Residential Energy Credits, on the IRS website. Read more about it here.