Switching to a Tankless Water Heater? You May Qualify for Federal Tax Credit 25C

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Ann Arbor, Mi. (March 13th, 2024) – Energy-efficient plumbing upgrades, such as tankless water heaters, come with several benefits. Tankless water heaters – also known as on-demand or continuous water heaters – are space-saving water heaters that can be placed in areas that may provide hot water quicker and more efficiently.

There are also options to upgrade your existing plumbing system to support recirculating hot water systems to provide almost instantaneous hot water all within the heater. Another thing you should know if you are considering energy-efficient home upgrades like switching to a tankless water heater is that you may qualify for federal tax credits of up to $3,200 annually through 2032.

As trusted professionals in the plumbing industry, Z PLUMBERZ prides itself on providing options based on expert recommendations to help you conserve energy and cut down on water usage. Let’s discuss how switching to a tankless water heater can help you save money, maximize energy efficiency, and potentially qualify for thousands of dollars in tax credits.

The Benefits of Switching to a Tankless Water Heater
Since upgrading to a tankless water heater can be expensive, you may be reluctant to make the switch. However, the pros of switching to a tankless water heater undoubtedly outweigh any cons. In addition to supplying you and your household with a constant supply of hot water, tankless water heaters take up less space and consume less energy than standard tank water heaters.

Tankless water heaters also have a longer lifespan. While standard tank water heaters typically last anywhere from 8 to 12 years, tankless water heaters can last more than 20 years. If you are ready to switch to a tankless water heater, Z PLUMBERZ is eager to help! Our experienced technicians will assist you in selecting the best tankless water heater for your home and approach its installation with precision and care.

How Do I Know if I Qualify for the 25C Tax Credit?
Although there is no way to guarantee your energy-efficient home upgrade will qualify for a tax credit, understanding tax credit qualifications can help you determine whether or not you qualify.

According to the IRS, you may qualify for the energy efficient home improvement credit if the home you improve is located in the United States and is an existing home (meaning that it is not newly constructed). Additionally, you must own or rent the home, meaning that landlords and other property managers are not eligible.

Since the 25C tax credit is designed to motivate homeowners like you to make eco-friendly home improvements, there are several different home upgrades that may qualify. These home upgrades include new:

  • Electric or natural gas heat pump water heaters (i.e., tankless water heaters)
  • Electric or natural gas heat pumps
  • Biomass stoves and boilers

Key takeaways:

  • Tankless water heaters consume less energy, heat up water more efficiently, and have a longer lifespan than standard tank water heaters.
  • Although switching to a tankless water heater can be more expensive than a standard “tank-type water heater,” you may qualify for the energy efficient home improvement credit, which will help offset the cost of this switch.

Ready to learn more about switching to a tankless water heater? Click here!

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Z PLUMBERZ is a full-service, fast-growing plumbing franchise. Z PLUMBERZ provides expert repairs, installation, and maintenance for emergencies or long-term, preventative safeguarding. From blockages, sewer lines, appliances, infrastructure, and more, our Call Center Support and experienced plumbers work 24/7 to ensure long-lasting and reliable plumbing, drains, and sewer solutions in residential, commercial, and industrial settings. Z PLUMBERZ is part of BELFOR Franchise Group, a division of BELFOR Property Restoration, the world’s largest property restoration company. For more information about Z PLUMBERZ services, please visit www.zplumberz.com. For more information about franchising with Z PLUMBERZ, visit https://zplumberzfranchise.com/.

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