Can a thankless water heater be claimed

[tvmitchell1]

Can the installation of a tankless water heater that replaced a tank water be claimed

[Texas Roger]

Nonbusiness Energy Property Credit equals 10 percent of what a homeowner spends on eligible energy-saving improvements , up to a maximum tax credit of $500 for the combined years since 2006. The cost of certain high-efficiency heating and air conditioning systems, water heaters all qualify, along with labor costs for installing these items.

To enter the information for the credit, go to Deductions and Credits and look under Your Home for Home Energy Credits. You will not be able to use the Free Edition to claim this credit. 

[MayaD]

Yes. As long as the water heater meets the specific energy efficiency guidelines. See the IRS instructions for details.

You may also include the amounts paid for the assembly, preparation and installation. The maximum dollar amount for energy-efficient building property is 10% with a credit limit up to $300.

The residential energy property credit is nonrefundable. A nonrefundable tax credit allows taxpayers to lower their tax liability to zero, but not below zero.

To claim the credit:

1. Open (continue) your return 
2. Inside TurboTax, search for this exact phrase including the comma and spaces: 5695, residential energy credit
3. Select the Jump to link in your search results.
4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes, then select Continue.
5. Follow the instructions to enter your energy-saving improvement costs.