Tax Credits for Tankless Water Heaters

Why Tankless vs. a Traditional Tank?

Produce more hot water using less energy than the most efficient storage tank style heater. Tankless is the environmentally responsible water heating solution. It saves energy, saves space and saves you money.

Endless Hot Water

Rinnai tankless water heaters heat the water you need, when you need it. Turning any water source into hot water on demand. You are not limited to the amount a storage tank heater can hold. Whether you are washing the dishes, washing your clothes, or drawing a hot bath, Rinnai’s tankless water heater technology will supply endless hot water to your lifestyle demands-even if you do them all at once!

Lower Energy Bills

Rinnai Cost Less Enjoy up to 40% energy savings with a Rinnai tankless water heater. Our units are designed to be highly efficient and only heat water when it is needed, a revolutionary advantage over inefficient tank-style heaters.

Longevity

2x Rinnai tankless water heaters have a typical life of up to 20 years. This can be twice as long as a tank style unit!

Space Savings

Traditional vs Tankless Traditional tank water heaters can take up to 16 square feet of valuable floor space. However, Rinnai tankless water heaters are about the size of a carry-on suitcase and can be installed on virtually any wall inside or outside of your home.
Clean, Fresh Water

Traditional tank-style water heaters can build up rust and scale inside their tank, where the hot water you use for bathing and drinking is stored. With Rinnai tankless water heaters you will always experience fresh, clean water that is heated on demand, as it passes through the unit.
Sustainable and “Green”

Energy Star Rinnai has earned ENERGY STAR approval by meeting the strict energy efficiency guidelines set by the U.S. Environmental Protection Agency and the Department of Energy, by using less energy and preventing greenhouse gas emissions.

Federal Tax Credits Extended for 2011

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 signed by President Obama on December 17, 2010, extended tax credits for qualifying energy-efficient, residential water heaters and boilers placed in service between January 1, 2011 and December 31, 2011. The structure is similar to the 2009-2010 American Recovery and Reinvestment Act, however, the credit amount has changed. Water heaters are still required to have an energy factor >= 0.82 or a thermal efficiency >= 90%, and boilers must have an AFUE >= 95.

Effective Dates

January 1, 2011 through December 31, 2011.

Product Qualifications and Credit Amount
  • Product: Tankless Water Heaters
  • Qualifications: Energy factor (EF) >= 0.82
  • Credit Amount: $300
  • All current Rinnai condensing and non-condensing tankless water heaters qualify with the exception of the R98LS
  • Product: Boilers
  • Qualifications: AFUE >= 95
  • Credit Amount: $150
  • All Rinnai condensing wall-mounted boilers qualify
Guidelines
  • The Rinnai tankless water heater or boiler must be “placed in service” between January 1, 2011 and December 31, 2011. The IRS defines “placed in service” as when the product is ready and available for use.
  • The Rinnai tankless water heater or boiler must be installed in or on the taxpayers’ principal residence in the United States.
  • The tax credit is ONLY available for existing homes.
  • There is an overall cap of $500 for fiscal years 2006 – 2011 combined. If you have ever claimed this credit in the past, it counts toward the $500 cap (but does not affect the $1500 limit available for 2009 and 2010). So, for example, if you claimed $300 in 2007, you can only claim $200 in 2011; if you claimed $800 in 2009, you cannot claim any more credit.
How to Claim Your Tax Credit for 2011
  • Purchase and install a qualifying Rinnai tankless water heater or boiler between Jan. 1, 2011 – Dec. 31, 2011
  • Save your proof of purchase along with a copy of the 2011 Manufacturer’s Certification Statement (available soon).
  • When filing your 2011 taxes, use IRS Form 5695 (2011 version) – it will be available late 2011 or early 2012. Consult a tax professional for further details.

Still need to apply for your 2010 Federal Tax Credit? Download and save the 2010 Manufacturer’s Certification Statement along with a copy of your proof of purchase. Consult a tax professional for further details.