The Water Butler

All Ways Plumbing


Better Water
Better Life

Water Heater Service and Repair MN | Water Heater Tax Credits

Water Heater Installation and Repair MN

If your water heater is over ten years old it may be filled with sediment and corrosion that steals the heating capability of your water heater. Even worse, the extra energy used by older water heater models may be costing you in excess utility charges. Well improve the performance of your current water heater, or replace it with a new energy efficient hot water heater. Tankless hot water heaters save energy costs because they dont constantly heat unused water in a large tank. They only heat the water on demand. Your water heater may only need maintenance. Sediment can flushed and key components are replaceable. A plumber will diagnose the cause of your hot water heater problem and explain what is causing your problem. If you need to replace your water heater a technician will explain all your options and make sure your replacement is properly sized to serve your families needs.

Water Heating Tax Credits

Tax credits are designed to assist homeowners with improving the energy efficiency of their homes, and a number of air conditioning and heating components and water heaters qualify. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) includes a provision to restore the federal tax credit program to pre-Stimulus levels for 2011, including lifetime tax credit limits. Although the American Recovery and Reinvestment Act of 2009 no longer exists, homeowners can still receive up to $300 in federal tax credits through December 31, 2011, subject to caps based on the type of equipment installed. Under the new law you may qualify for tax credits equal to 10% of the costs of qualifying equipment as follows: Up to $300 (10% of costs)
  • Gas Tankless Whole Home Water Heater - Energy Factor >= 0.82 and thermal efficiency of 90%
Up to $150 (10% of costs)
  • Gas, Propane or Oil Hot Water Boiler AFUE >= 95%
Up to 30% of Cost (see for more information)
  • Geothermal and Solar Energy System tax credits are unaffected by the changes and remain in place as is through 12/31/2016.
Federal tax credits under the 2010 Tax Relief Act are only available for improvements made in 2011. Not all equipment will qualify for tax credits. Some products will qualify for federal incentives; some are also eligible for state rebates. Each states energy office offers specific information on state tax rebates. When you choose a Minnesota Plumbing Contractor to install your new energy efficient water heater, they can show you several options, including systems that could be included in the federal tax credit program. Installing these energy efficient systems can save you money with improved energy efficiency and provide additional savings when you file your taxes. Remember that unlike a deduction, which lowers taxable income, a tax credit reduces the actual tax paid, dollar-for-dollar. But since every taxpayers situation is different you should consult with a tax adviser. Contact your local Minnesota Plumber for an evaluation on your water heater and start saving today! Source: