Developed by the U.S. Department of Energy, the ENERGY STAR program is designed to shine the spotlight on energy-efficient products across various categories. All water heater models recognized under the ENERGY STAR program meet very strict efficiency requirements, and use anywhere from 7.5% to 55% less energy.

• Reduce your home’s energy consumption
• Save money in reduced utility bills over the life of your water heater
• Reduce demand on utility companies
• You may qualify for a $1,500 tax credit

See energystar.gov/taxcredits for details on the availability of tax credits for ENERGY STAR water heaters. The American Recovery and Reinvestment Act of 2009 (the Stimulus Bill) signed on February 17, 2009 by President Obama created changes in the previous tax credit application. Based on this new bill, the guidelines are as follows:

• The tax credits that were previously effective for 2009, have been extended to 2010
• The tax credit has been raised from 10% to 30% of the cost
• The tax credits that were for a specific dollar amount have been converted to 30% of the cost
• The maximum credit has been raised from $500 to $1500 for the two years (2009–2010)
• However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.

Note that tax credits for water heaters are available at 30% of the cost, up to $1,500 maximum per homeowner for all improvements combined, in 2009 & 2010 are for existing homes only (except for solar water heaters which also apply to new construction). This maximum credit includes the cost of installation. The law specifies installation costs as: "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property." For solar water heaters, there is no upper limit on cost plus installation.

There are no tax credits for conventional electric storage water heaters or electric tankless water heaters.

ENERGY STAR
Visit the ENERGY STAR site for more information on how the program applies to water heaters, eligible models and helpful useful tips.
www.energystar.gov/waterheaters

Consider the facts: the average life expectancy of a water heater ranges 10-15 years and there are 27 million households with water heaters that are already over the age of 10. Are you one of them?

By making an early, planned switch to an ENERGY STAR water heater before your old one fails (and possibly leaves you with a big mess) you will:

• Avoid having to make a hasty replacement decision under duress
• Start saving money right away with a much more efficient model
• Have much more control over your purchase