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Bosch Tankless Water Heater Tax Credit

The new Act makes a distinction between tax credits for existing homes and those for houses being built. The information below is for tax credits for existing homes. Please follow the link at the right for information for new home construction.

The Bosch Residential Tankless Water Heaters listed below all have Energy Factors of at least 0.82 or Thermal Efficiencies of at least 90%, which means they are Energy Star qualified for the 30% tax credit. This credit is figured on the cost of the water heater plus the installation cost. The maximum amount of this credit is $1,500, which is the maximum combined total amount for 2009 and 2010 that can be claimed for all the home improvements subject to the $1500 cap.

Remember, though, that the tax credit can be considered as just an extra incentive to make the switch to tankless hot water. Even without the tax credit, a tankless water heater may reduce your energy costs for hot water by 10-30% every year.

Qualifying Bosch Contractor Grade Water Heaters 
Natural Gas and Propane Models  
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GWH C 920 ES (NG & LP) 94% Thermal Efficiency
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GWH C 800 ES (NG) 0.89 Energy Factor
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GWH C 800 ES (LP) 0.90 Energy Factor
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GWH 715 ES (NG & LP) 0.83 Energy Factor

Save up to $1,500 (30% of purchase & installation) with Federal Tax Credits for Qualified Bosch Tankless Water Heaters.

Energy Efficient Bosch Water Heaters Can Save You Money On Your Taxes In Addition To Year-Round Savings on Your Energy Bill.

2009 signifies the return of a federal tax credit for non-solar tankless water heaters under the Energy Policy Act of 2005, which expired at the end of 2007. This successful program was extended under the “American Recovery and Reinvestment Act of 2009.” The act re-establishes tax credits for purchasing and installing energy efficient home improvements, such as a Bosch Tankless Water Heater.

Full guidelines for the Tax Credit can be viewed on the Energy Star website.
Download the Manufacturers Certification Document.

Home Improvements
Home improvement tax credits are available for energy-saving home improvements placed in service from January 1, 2009 through December 31, 2010. Any home improvements made in 2008 are not eligible for the tax credit.

Home improvement tax credits are available for insulation, replacement windows, non-solar water heaters, and certain high efficiency heating and cooling equipment. The maximum amount that a taxpayer may claim from all of these tax credits combined is $1,500 for the two years of the tax credit (2009 and 2010) Some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.

If you are building a new home, you do not qualify for the tax credits for “eligible building envelope components” (windows, doors, insulation, roofs) or “qualified energy property” (HVAC & non-solar water heaters). However, the tax credit for photovoltaics, solar water heaters, small wind systems, and fuel cells is available for homeowners building new homes.

Internal Revenue Service (IRS) guidance for consumers can be viewed here: IRS Notice 2006-26 [PDF].

Tax Credit details and qualifications for Tankless Water Heaters

  • Tax Credit of 30% of the cost of the Tankless Water Heater AND Installation cost with a maximum of $1,500 (the maximum tax credit claim for energy efficient products)
     
  • Must have an Energy Factor of at least a 0.82 or Thermal Efficiency of 90%
     
  •  Full Tax Credit details can be found at EnergyStar Website