Tankless Tax Credit FAQ
Below you will find the frequently asked questions for the Tankless Tax Credit. Select a question from the list below to be taken to the full answer.
Federal Tax Credit Specific FAQ's
1. How can I claim my tax credit for 2009?
- Purchase and install a qualifying Rinnai tankless water between Jan. 1, 2009 - Dec. 31, 2009.
- Save your proof of purchase along with a copy of the Manufacturer’s Certification Statement.
- When filing your 2009 taxes, use IRS Form 5695 (2009 version) - it will be available late 2009 or early 2010. Consult a tax professional for further details.
2. Where can I find a Rinnai tankless water heater?
To locate a Rinnai dealer near you, please click on the Find a Dealer link and type in your zip code.
3. What are the specifications for energy-efficient water heaters under The American Recovery and Reinv
Whole-home gas tankless water heaters must have an energy factor (EF) of at least 0.82 or greater, must be “placed in service” between January 1, 2009 and December 31, 2010, and must be installed in or on the taxpayer’s principal residence in the United States.
For information on specifications for other energy-efficient home improvements, please visit www.energystar.gov.
4. How much is the tax credit for a Rinnai tankless water heater?
According to The American Recovery and Reinvestment Act of 2009, homeowners are eligible for a tax credit equal to 30% of the full purchase and installation price of a qualifying Rinnai tankless water heater up to a maximum of $1500.
View Qualifying Rinnai Tankless Water Heaters
The maximum amount that a taxpayer may claim for all qualifying energy efficient home improvements including the purchase and installation of a Rinnai tankless water heater is $1,500 over the lifetime of the credit (2009 & 2010).
5. When is the tax credit available?
The home improvement tax credits apply to improvements “placed in service” between January 1, 2009 and December 31, 2010. The IRS defines “placed in service” as when the products or materials are ready and available for use – this would generally refer to the installation, not the purchase. Therefore, Rinnai tankless water heaters installed in 2008 are not eligible for the tax credit.
6. I am currently building a home; do I qualify for the tax credit?
The tax credit for energy efficient home improvements is ONLY available for existing homes.
If you are building a new home or are a contractor, please visit www.energystar.gov to find out which tax credits may be available to you.
7. What is different about the tax credits modified under The American Recovery and Reinvestment Act of
•The tax credits previously effective for 2009 were extended through 2010.
•The total tax credit was increased from 10% to 30%
•The tax credits that were for a specific dollar amount (ex. $300 for qualifying residential water heaters), were modified to 30% of the full purchase and installation price.
•The maximum tax credit amount a homeowner can receive for all qualifying home improvements has been raised from $500 to $1500 over the lifetime of the credit (2009-2010). However, some improvements such as geothermal heat pumps and solar panels are not subject to the $1,500 maximum.
8. What is the difference between a Tax Credit and a Tax Deduction?
In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions – such as those for home mortgages and charitable giving – lower your taxable income. If you are in the highest 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit.
9. What is a tax credit?
You don’t receive an income tax credit when you buy the product, like an instant rebate. You claim the credit on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount you have to pay.
General FAQ's
1. Can I purchase Rinnai products online?
Improper installation of gas appliances, including, but not limited to Rinnai products, can be extremely hazardous to you, your family and your property. Accordingly, Rinnai: (1) recommends that all of our products be installed by a Rinnai trained and licensed contractor or approved and qualified plumber or contractor according to pertinent federal, state, and/or local regulations; (2) specifically disapproves any internet sales of its products through online retailers, auction sites or any other online direct sales method to consumers. Improper installation of your Rinnai product can affect the warranty provided by Rinnai.
2. Where can I purchase a Rinnai product?
Rinnai products are sold through local plumbing and HVAC dealers. Please click on the Find a Dealer link and enter your zip code to locate a dealer near you.
3. How do I locate a Rinnai dealer?
To locate a Rinnai dealer near you, please click on the Find a Dealer link and type in your zip code.
4. How do I get service for my Rinnai?
We recommend that you first contact the original installer or plumber to service your Rinnai. However, if that solution does not work for you, please visit our online Customer Support Center and type in your zip code under “Service & Repair”.
5. Can I finance or lease Rinnai products?
Yes, you can enjoy the benefits of Rinnai energy efficient tankless water heaters and direct vent wall furnaces at a low monthly rate through the AWHR leasing program.
Advantages of Leasing:
* Low, affordable monthly payments
* No up-front installation cost
* Worry-free service for the life of your rental agreement
* Flexible payment options
* Customer Referral Program (2 Months FREE!)
For more information call 1-888-392-5603 or visit http://www.awhr.com.