$300 Home Energy-Efficiency Improvement Tax Credit Details
The new $300 Energy Tax Credit Bill, effective January 1, 2006, applies to energy efficient gas water heaters with an energy rating of 0.80 or greater. The NEW Bosch 2400E / 2400EO, the Bosch 250SX / 250SXO, the Bosch 125HX, the NEW Bosch 1600H and the Bosch 125FX (LP only) tankless water heaters meet the requirements of this bill and qualify for the $300 Tax Credit. This tax credit runs though December 31, 2007.
The Bosch 125FX NG, 125B /125BO, New 1000P and 38B tankless water heaters have an energy factor below 0.80 and therefore do not qualify for the tax credit. None of the electric tankless water heaters qualify for the tax credit either.
See: http://www.energy.gov/taxbreaks.htm
Copies of the bill are available at http://www.energy.senate.gov or http://www.house.gov/jct/pubs05.html
What is a tax credit? You do not receive an income tax credit when you buy the product, like an instant rebate. You claim the credit on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount you have to pay.