While everyone in the Minneapolis/St. Paul area understands that our taxes are necessary to fund our community and country, we can also all agree that it is nice to get a little bit of a break on the amount we are paying in taxes. So when there is an opportunity to upgrade an essential feature in your home and save a little on your tax bill, it is a welcome surprise for more homeowners. And the Paul Bunyan Plumbing & Drains team wants to make customers aware that they could be eligible for a tax credit when installing certain non-solar water heaters in their homes.
What Does Energy Star Mean?
For those who are not familiar with the name Energy Star, it is a government-backed name or symbol for energy-efficient appliances and electronics. Any item that displays the Energy Star label must meet energy efficiency criteria for the specific product line that has been created by the government in conjunction with an independent testing agency. The purpose of the program is to provide the public with reliable information and guidance when selecting items that help save consumers money and reduce greenhouse gas emissions.
What Is The Energy Star Federal Tax Credit For Water Heaters?
The Energy Star Federal Tax Credit is offered on non-business properties but only applied to a primary residence. In addition, new construction and rental properties do not qualify. Currently, the credit is offered through December 31, 2022. However, updates will be applied annually until the scheduled culmination of the project on December 31, 2032.
Qualifying Water Heaters
Water heaters account for roughly 12% of the energy consumed in the average home. And in the case of Energy Star water heaters, they are one of the most effective ways to decrease a home’s energy consumption without reducing its function or comfort. Most electric heat pump water heaters qualify for the one-time credit from this program. In addition, certain gas, oil, and propane water heaters also meet the criteria for this federal tax credit. The most critical factor in the qualification is that the water heater meets the Uniform Energy Factor (UEF) >= 0.82 or a thermal efficiency of at least 90%. The experts at Paul Bunyan Plumbing & Drain can guide you in your selection of the ideal water heater to meet your home’s hot water needs while also conforming to the requirements of this tax credit program.
The Amount Of Credit To Expect
The maximum amount of the tax credit is $300. Your credit will be calculated as 10% of the cost of the new water heater up to the $300 limit. To learn more about this tax credit or other credits offered via the purchase and installation of Energy Star-rated appliances and devices, visit the Energy Star website. The team at Paul Bunyan will also be happy to answer any questions you have regarding the requirements for your new water heater or to provide you with a price quote for the water heater installation.
Please contact Paul Bunyan at 612-340-1444 for all your water heater and plumbing needs.