WATER HEATER TAX CREDITS

Must be placed in service in an existing home which is your principal residence by December 31, 2022. New construction and rentals do not apply.

Propane Hot Water Boiler Credit:  $150
Propane Water Heater Credit:  $300

 Propane Hot Water Boiler Credit:

Gas powered boilers that are recognized as ENERGY STAR Most Efficient meet the requirements of this tax credit.

Form 5695 Instructions: https://www.irs.gov/pub/irs-pdf/i5695.pdf

Form 5695: https://www.irs.gov/pub/irs-pdf/f5695.pdf

Requirements:

AFUE >= 95

*AFUE, or Annual Fuel Utilization Efficiency, measures how efficiently a boiler converts fuel to heat. The higher the AFUE rating, the more energy-efficient the system and the more heat entering your home.

Propane Water Heater Credit:

Certain ENERGY STAR certified gas water heaters meet the requirements for this tax credit. Water heaters account for 12% of the energy consumed in your home.

Form 5695 Instructions: https://www.irs.gov/pub/irs-pdf/i5695.pdf

Form 5695: https://www.irs.gov/pub/irs-pdf/f5695.pdf

Requirements:

Uniform Energy Factor (UEF) >= 0.82 OR a thermal efficiency of at least 90%.

*A water heater’s UEF rating is a measure of its energy efficiency, with higher numbers denoting more efficient units. The UEF calculation is based off of how much energy the water heater uses and how much energy is used to power the water heater itself.