If you purchased an energy-efficient water heater in 2011, you may be entitled to more savings than what you are already seeing on your energy bills. The U.S. government offers tax credits for high-efficiency non-solar water heaters bought for your home. Since water heating can account for as much as 25 percent of the energy used in your home, a high-efficiency model will allow you to use much less energy and save money by doing so. If you are interested in taking advantage of the water heater tax credit, you should act soon; many of them will expire at the end of 2011.
The tax credit amounts to 10 percent of the cost of the equipment, up to $500, or a specified amount ranging from $50 to $300. The equipment must be purchased for an existing home, and that home must be your main residence. These tax credits do not apply to new construction and rental units.
Gas, oil, and propane water heaters qualify for credit of up to $300. The water heater must have an energy factor (a measurement of the overall efficiency of water heaters and other appliances) of 0.82 or greater and a minimum thermal efficiency of 90 percent.
Electric heat pump water heaters also qualify for the $300 tax credit. They must operate with a 2.0 minimum energy factor.
To apply for your tax credits for units placed in service in 2011, you must file the 2011 version of IRS Form 5695 with your 2011 federal income taxes by the IRS tax filing date of April 15, 2012. The latest version of Form 5695 will be available from the IRS in early 2012.
Around the Clock Heating and Air Conditioning, Inc. has been a trusted source of residential and commercial heating and air conditioning service since 1967. We serve customers in Los Angeles and surrounding areas, including Glendale, Pasadena, Santa Monica, Simi Valley, Ventura County, the San Fernando Valley, and the Santa Clarita Valley. Contact us todayfor help with your 2011 water heater tax credit.
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