Tax credit changes in stimulus package affect high efficiency water heaters
New tax credit changes in The American Recovery and Reinvestment Act of 2009 affect A. O. Smith water heating products.
Under the revised law, the previous tax credit of $300 has been converted to 30 percent of the total installed cost, including labor, with a cap of $1,500 through 2010. For water heaters installed from Jan. 1, 2009 through Feb. 16, 2009, the water heater must have at least a .80 Energy Factor (EF) rating or 90 percent thermal efficiency to qualify for the latest tax credit. Beginning on Feb., 17, the water heater must have at least a .82 Energy Factor (EF) rating or 90 percent thermal efficiency to qualify. The credit is subject to a combined $1500 maximum per homeowner for all improvements eligible under the new law. The $1500 credit is a cap on the combined amount that can be taken in tax years 2009 and 2010.
“By encouraging the installation of high efficiency water heaters, the government is addressing a long-term energy conservation challenge while consumers begin to save immediately on their utility bills,” said David Chisolm, A. O. Smith water heater brand manager. “A. O. Smith established itself as an industry leader through a dedication to the development of technologically advanced products and has a full line of water heaters eligible for this tax credit.”
The A. O. Smith Vertex™ product line and the tankless product line both qualify for the $1,500 tax credit. To qualify, units must be placed into service between Jan. 1, 2009, and Dec. 31, 2010. For additional information, visit www.hotwater.com.