Tankless Federal Tax Credit
Federal Income Tax Credits and Other Incentives for Energy Efficiency
Under the Bipartisan Budget Act of 2018 which was signed in February 2018, a number of tax credits for residential energy efficiency that had expired at the end of 2016 were renewed. Tax credits for non-business energy property are now available retroactive to purchases made through December 31, 2017. Tax credits for all residential renewable energy products have been extended through December 31, 2021, and feature a gradual step down in the credit value.
Products eligible for the tax credits that have earned the ENERGY STAR are independently certified to save energy, save money and protect the environment. Use up to 30% less energy in your home by outfitting with ENERGY STAR certified products available across more than 70 categories.
*Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).
HOME TANKLESS GAS WATER HEATERS
By heating water only when it's needed, ENERGY STAR certified gas tankless water heaters cut water heating expenses, while also providing continuous hot water delivery. Gas tankless models are a great choice for new construction and major remodeling, but are also becoming popular as a replacement for gas storage water heaters. Read our Gas Water Heater Fact Sheet (PDF, 83 KB) to learn more.
COMMERCIAL WATER HEATERS
ENERGY STAR certified commercial water heaters include gas-fired storage and gas-fired instantaneous (also referred to as tankless) units that use around 15 percent less energy than conventional commercial units by employing more efficient heat exchangers. The ENERGY STAR label is now available for electric heat pump water heaters as well. These units transfer ambient heat to the water using a refrigerant-based system, using less than half the energy of an electric resistance unit. On an annual basis, an ENERGY STAR commercial electric heat pump water heater would be expected to save at least 10 MWh with an emissions savings equivalent to removing 1.5 cars from the road per year.
If all commercial water heaters sold in the U.S. were ENERGY STAR certified, the energy cost savings would grow to nearly $900 million and more than 17 billion pounds of annual greenhouse gas emissions would be prevented.
How Heat Pumps Work