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The plumbing system of a house seems fairly simple. Homes either receive water from a utility company, or a private well. Sewer systems or septic tanks receive the outflow of water from a house. Water flows through your home via pipes that go to plumbing fixtures. When the fixture is turned on, water flows out; used or dirty water goes down the drain, back through pipes and into the sewer or septic system. Classically, tank heats and stores water until you turn on a hot water faucet. New tankless water systems do not store water, but instead quickly heat water as it is needed. Typically, one main water shutoff that is capable of shutting off the water to the entire house is located where the water comes into your home, or near the water heater. Each individual fixture has its own shutoff, often located near the pipes under the sink. Despite the simple nature of plumbing systems, a professional contractor should perform all plumbing work for your home. Inexperienced or improper work can lead to burst pipes or leaks, causing possible significant damage.

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2009 Water Heater Tax Credit

By Jennifer Weldon

The government is helping influence new home improvements to be energy efficient ones by providing tax credits for qualifying renovations. Purchasing and installing a new energy efficient hot water heater can qualify for a tax credit by following the guidelines set out by the federal government.

Get a Water Heater Tax Credit
The federal government is promoting energy efficiency in homes by offering many new tax credits for qualifying home improvements. If you are considering purchasing a new water heater, you can take advantage of a tax credit aimed at low energy use water heaters.

How to Qualify
The water heater tax credit is valid for purchased made between January 1, 2009 and December 31, 2010. Hot water heaters that meet the new energy efficient standards are available in gas, oil, propane, electric and solar. Each category of hot water heater has separate credits, but you can combine these over the two year period for a maximum $500 credit. The hot water heater must be used to heat water for the home, not a pool or hot tub.

Gas, Oil, or Propane Hot Water Heaters
The new criteria for energy efficient gas, oil, or propane hot water heater is an energy factor of at least 0.8. This is an increase of 33% from the current standard. You will need to check the specifications of the hot water heater before purchasing. While tankless hot water heaters are touted as more energy efficient, not all models will meet this new requirement. Look for a Manufacturer's Certification Statement on any water heater to verify that it does meet the guidelines. You will be required to have this certificate. Qualifying gas, oil, or propane hot water heaters carry a $300 tax credit. This $300 counts towards the $500 maximum credit.

Electric Water Heaters
New standards for electric hot water heaters require them to be over 50% more energy efficient than the current standard. Thus, the energy factor on the hot water heater should be 2.0. Again, look for a Manufacturer's Certificate Statement to verify eligibility. Electric hot water heaters carry a $300 tax credit which counts towards the $500 maximum credit.

Solar Water Heaters
If you are considering converting your hot water supply to a solar powered source, the guidelines are more strict. First, you need to install a Solar Rating and Certification Corporation, SRCC, certified system. This solar powered heating system must get at least 50% of its power from the sun. The tax credit is 30% of the expense of the system, up to $2,000. The expense of the system is clarified as only the solar water heating system property. This would not include any expense for the whole water heating system of the house.

Upgrading your hot water heater to a new energy efficient model will save you money on your monthly utility bills while you are doing positively impacting the environment. The government has made it easier to do this by providing these tax credits to help offset your initial cost of the system. Check with a local professional contractor for details about the tax credit and which hot water heaters qualify for it. Always have the installation done by an experienced professional so you can ensure it runs correctly and avoid any plumbing leaks and spills.