How To Get Your Hands On The Tankless Water Heater Tax Credit
The tankless water heater tax credit may give you the incentive to
invest in a tankless hot water heater.
Investing In A Tankless Water Heater Often Qualifies You For A Tax Credit
If you plan to take the plunge or thinking about taking the plunge for the water heaters tankless option, you will be happy to know there is a tankless water heater tax credit available to you.
In fact, you can get a tax credit up to $1500 just for have a tankless water heater.
You can claim the credit under The American Recovery and Reinvestment Act.
You may be wondering just how you go about claiming this credit because it is not automatic.
When You Purchase Your Tankless Water Heater, Make Sure You Save The Receipt
First off, when you purchased your unit, you should have saved the receipt, or at least have access to the credit card statement or canceled check.
Whenever you claim a credit such as a tankless water heater tax credit, Uncle Sam may want some proof later on down the road.
Keeping good records is always a smart idea for any investment.
Your Installation Date Determines Which Form You WIll Need To Use
Next, if your unit was installed in 2009, you need to fill out the residential tax credit on form 5695 that you can download directly from the Internal Revenue website.
If you just purchased your unit in this year, then you will wait until you file your income taxes on this year's return.
If You Fail To Take The Tankless Water Heater Tax Credit During Your Purchase Year, Then You Can File For It The Next Year
For example, if you failed to take the credit when you file your 2009 income taxes, you can amend your taxes and send in the 5695 form to the Internal Revenue Service.
You can also choose to wait and simply file the tax credit form with your 2010 tax returns.
At The Time Of This Article, You Can Only Claim The Credit Once
You can only claim the credit one time and it is not $1500 per unit, so if you purchased four units, you cannot claim $1500 x 4, you can only claim up to $1500 credit.
Obviously, you do want to file the tankless water heater tax credit because in essence it means the government is helping you pay for your tankless.
Tankless Heaters Qualify For The Credit Because Of Their Energy Efficiency Rating
The reason the tankless heaters qualify for the credit is because they are energy efficient and the government is rewarding any homeowner that is attempting to use less of the world's resources.
The tax credit is definitely a nice incentive, especially if you were planning to transition to the tankless options anyway.
You Can Download The Tax Credit Forms At The IRS
Additionally, form 5695 that you can download from the Internal Revenue website has detailed instructions for filling out the form, but if you get stuck, you can always hire a tax specialist.
After all, you want to take all the tax credits the government is handing out.
Even If You Don't Get The Tax Credit, Tankless Water Heaters Are Still A Great Investment
Finally, the water heaters tankless options are a super investment even without the tax credit, but the credit helps make it an even sweeter investment.
Remember, by having a tankless water heater installed, you are offering your family on-demand hot water, saving money on your energy bill, and getting a reward from the government, all three are a very good reason to go tankless.
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Here's To Your Success With A Tankless Water Heater!
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