New tax credit changes in The American Recovery and Reinvestment Act of 2009 affect A. O. Smith water heating products. Under the revised law, the previous tax credit of $300 has been converted to 30% of the total installed cost, including labor, with a cap of $1,500 through 2010. For water heaters installed from Jan. 1, 2009 through Feb. 16, 2009, the water heater must have at least a .80 Energy Factor (EF) rating or 90% thermal efficiency to qualify for the latest tax credit.
Beginning on Feb., 17, the water
heater must have at least a .82 Energy Factor (EF) rating or 90% thermal
efficiency to qualify. The credit is subject to a combined $1,500 maximum
per homeowner for all improvements eligible under the new law. The $1,500
credit is a cap on the combined amount that can be taken in tax years 2009 and
Tax Credit…A. O. Smith
April 1, 2009