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A tankless water heater tax credit is a government’s tax credit to citizens who take advantage of switching to a more energy efficient tankless hot water heater. These types of hot water heaters have been around for a while, and many models offer a less energy consuming option for keeping a home supplied with hot water. Tankless water heater tax credits are often part of an initiative to improve a nation’s overall carbon footprint or lower average energy use through the tax code.
Different nations around the world have their own ways of initiating energy-saving programs. In many countries, builders and families are led by simple economic incentive to purchase and install energy-efficient tankless hot water heaters. In the United States, where hot water heater tanks have been the norm, the federal government created a 2009 tankless water heater tax credit that has been extended to incentivize the addition of tankless water heaters to homes.
There are often a number of requirements that must be met in order to legitimize a tankless water heater tax credit by a household. Some credits might require documentation like a manufacturer’s certification that shows how the device will save energy. Nations also have their own programs and rating systems to analyze energy use by appliances and promote less energy consumption in the average household.
Other standards might apply to appliances eligible for a tankless water heater tax credit. There may be a requirement in terms of British Thermal Units (BTUs) per hour. In terms of the “payout” or tax credit incentive, the total amount may be figured in terms of a percentage of the total cost, or a set sum of money. Governments may also supply additional or equal tax credits for solar driven appliances. Another way that households can save with solar or renewable energy is by selling electricity back to the grid or through other government channels.
Energy tax credits are likely to become the norm for nations whose governments tend to work through their tax codes to alter “free market” activity when it becomes necessary to improve levels of energy use. Tax credits for energy efficient heating are a way to offset the initial cost to homeowners for purchasing and installing new systems. Over time, the new energy efficient systems will often pay for themselves in terms of utility savings, while lightening the load on a national energy grid.
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