The key is, they have to have an Energy Star Certification. If you received an Energy Star Certification from your installer or your water heater has the Energy Star Certification on it, you qualify.
For Non-solar water heaters to qualify for the Energy Credit, ENERGY STAR certified electric water heaters meet the requirements for this tax credit, as do certain ENERGY STAR certified gas water heaters.
Tax Credit Amount: $300
Requirements:
Electric heat pump:
Energy factor > 2.0
Gas, oil or propane:
Energy factor > 0.82 or Thermal efficiency of at least 90%
See definitions
To enter your energy improvement:
- Open your return, if you don't already have it open.
- In TurboTax, search for energy improvements. (Do not search for "energy credit," as this will take you to the wrong place in the program.)
- Click the "Jump to" link in the search results.
- At the bottom of the Energy-Saving Home Improvements screen, answer Yes and continue. Follow the on-screen instructions.
