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Credit for Solar Water Heating

By July 28, 2012

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Energy Star's federal tax credit for most types of water heaters expired Dec. 31. The only tax credit now available is for solar water heaters. It expires Dec. 31, 2016.

Homeowners can apply for a credit of 30 percent of the system's cost, including the equipment and installation. No maximum amount is applied to the credit.

To be eligible for the credit, at least half the energy to heat the water must come from the sun. The system also must have certification from the Solar Rating and Certification Corporation (SRCC) or a similar state-certified agency. Solar water heaters installed in new construction and existing houses, including principal and second homes, qualify. Solar swimming pool heaters are not eligible. See energystar.gov for additional details.

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