Tankless Water Heater Credit
Your premium energy efficient tankless water heater are eligible for tax credit according to the Oregon Department of Energy. The department says that you can get a credit on your Oregon income taxes for purchasing premium efficiency water heaters, solar water heaters, and waste water heat recovery systems. The Oregon Department of Energy stipulated April 1 of the year following the purchase, for submitting the application for tax credits, even if the tax credit is carried forward.
According to the department, the tax credit is based on the amount of energy saved above standard models. In other words, the tax credit is the amount noted on the list of qualifying equipment, which is regularly updated, or 25% of the net purchase price of the equipment whichever is less. This is excluding the labor cost.
One of the conditions for tax credit qualification is that you must have an Oregon income tax liability. If you do not have an Oregon income tax liability, you may choose to transfer your tax credit to an individual who does. This is done by checking the Pass-through Option section on the application form. The equipment must be located in an Oregon jurisdiction. It can be your primary or secondary residence to qualify for a tax credit.
The department says only premium efficiency water heaters are eligible for a tax credit. The premium efficiency water heaters are tankless water heaters, also called instantaneous, on-demand or point-of-use, heat pump water heaters and combination space and water heating systems. Conventional tank-type water heaters are not eligible as they are not efficient enough to qualify for a tax credit.
Water heaters with a minimum 80% energy efficiency rating are considered as energy efficient tankless water heaters eligible for tax credit. Generally, a typical home used tankless water heater is only 55% energy efficient.
The tax credit is intended to encourage households to install energy efficient water heater. So that, the average homeowner will save about 40% of their annual energy used for domestic hot water by installing qualifying tankless tankless water heaters and other equipments.