Tax Incentives
Tax Incentives | Tankless Water Heater Install | Plumbing | Rogersville
Imagine endless hot showers, lower utility bills, and a federal tax credit all flowing from the same upgrade. HEP’s licensed plumbers make it simple for Rogersville homeowners to swap outdated tanks for high-efficiency units that heat water on demand, cutting standby energy loss to zero. By pairing expert craftsmanship with current state and federal incentives, we unlock up to hundreds of dollars in rebates—turning superior comfort into an investment that pays you back year after year.
From the first phone call to final inspection, our crew handles permits, disposal of your old heater, and submission of every rebate form. The result is a streamlined tankless water heater install that maximizes savings while minimizing downtime, leaving you with nothing but reliable, space-saving performance and a little extra cash in your pocket. Reach out today, and let HEP’s tax-incentive pros turn hot water into smart money for your Rogersville home.
FAQs
What federal tax incentives are available for installing a tankless water heater in Rogersville?
Homeowners in Rogersville can use the Energy-Efficient Home Improvement Credit (Internal Revenue Code §25C). For tax years 2023-2032, the credit equals 30 % of the total installed cost of a qualifying natural-gas or propane tankless water heater, up to an annual cap of $600 per household. The credit is non-refundable but can be carried forward to the next tax year if it cannot be fully used in the year of installation.
How do I know if the tankless water-heater model I select qualifies for the federal credit?
The unit must carry the ENERGY STAR® label and meet one of two efficiency thresholds: a Uniform Energy Factor (UEF) of 0.82 or higher, or a thermal efficiency of at least 90 %. Manufacturers publish a one-page “Manufacturer Certification Statement” that lists all eligible model numbers. Keep that statement, along with your purchase invoice, for your tax records. Your installing plumber can help verify compliance before you buy.
Are there any state, utility, or local incentives in or near Rogersville that can be combined with the federal credit?
Yes. Rogersville residents served by Holston Electric Cooperative or other TVA-connected utilities can apply for a TVA EnergyRight rebate (currently up to $300) for installing an ENERGY STAR gas tankless unit through a Quality Contractor Network (QCN) plumber. Tennessee also waives state sales tax on ENERGY STAR water heaters during periodic “tax-free holidays.” These local benefits are independent of the federal credit and can be claimed together, reducing your out-of-pocket cost even further.
What paperwork do I need to claim the federal credit on my taxes?
1) IRS Form 5695 (Residential Energy Credits) attached to your individual tax return (Form 1040). 2) A copy of the paid invoice showing the unit cost and installation labor. 3) The Manufacturer Certification Statement for the specific model installed. You do not mail the certificate to the IRS, but you must keep it for at least four years in case of audit. Your plumber should provide an itemized receipt that clearly separates labor and equipment costs to support the $600 cap calculation.
Can I claim both the federal tax credit and a local rebate for the same tankless water-heater installation?
Yes. The Energy-Efficient Home Improvement Credit is not reduced by state or utility rebates. You may first apply for the TVA or utility rebate, which is typically issued as a check or bill credit, and then claim the 30 % federal credit on the net amount you personally paid. Taking the rebate does not affect your eligibility for the federal incentive, and vice versa.
Do installation and permit fees count toward the $600 federal credit limit?
They do. The federal credit is calculated on the total “placed-in-service” cost, which includes the price of the tankless water heater, required venting or gas-line upgrades, local permit fees, and professional installation labor, as long as all work is completed by a properly licensed plumber in 2023-2032. Keep itemized receipts so you can document the full cost if it approaches the $600 annual limit.