I recently installed a new water heater in my home since my old one decided to stop working. I knew about the tax credit on water heaters but not all the details. They have to meet certain energy efficiency of course. The energy factor has to be greater than 0.82 to qualify. You are eligible for 30% of the cost including installation. If you happen to replace your windows also these also can qualify for 30% tax credit. There is a limit of $1500 whether you do windows, water heater or both. Tax credits end December 31, 2010.
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