| Tax credits for solar and high efficiency hot | | | | Included in this stimulus package is a tax credit for |
| water heaters were part of President Obama's | | | | high efficiency hot water heaters but in this case |
| economic stimulus package. The law brought old | | | | there is a cap. Gas or electric water heaters, such |
| tax credits that expired in 2007 back into the | | | | as the tankless varieties, may be eligible for a |
| effect (like those for energy efficient home | | | | $1,500 tax credit if they have at least a .82 |
| improvements) and covers more areas. Home | | | | Energy Factor (EF) rating or have a 90% thermal |
| improvements must be made during the 2009 | | | | efficiency. The tax credit depends on what other |
| school year and must be made to the primary | | | | energy-efficient home improvements you are |
| residence. | | | | claiming. |
| There is a 30% tax credit for the expense of | | | | The difference in tax credits between solar and |
| installing a solar hot water heater for use in your | | | | high efficient hot water heaters indicates the |
| home that had no maximum on the total amount. | | | | importance the Obama administration places on |
| Solar hot water heaters for a swimming pool or | | | | encouraging Americans to use a renewable source |
| for a hot tub are eligible for a tax credit. Old laws | | | | of energy. Installing an All Energy Star solar hot |
| had a maximum of $2,000 or $4,000 for solar | | | | water heaters will get you a tax credit. This |
| water heaters, geothermal heat pumps or wind | | | | summer we are going to install a solar hot water |
| energy projects. These credits are available until | | | | heater in our home to work along side our |
| 2016 and cover both labor and material expenses. | | | | tankless heater. |