Water Heater Tax Credit NJ | Water Boiler Tax Credit | HVAC Tax Credit

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Tax Credit For Your Water Heater in NJ

The American Recovery and Reinvestment Act of 2009 signed on February 17, 2009, by President Obama has made significant changes to homeowner tax credits for specified energy-efficient home improvements including qualifying, residential water heaters and boilers. Some of the more significant changes include the extension of the tax credit through 2010 and the increase in the total available tax credit from 10% to 30%. When you purchase and install a qualifying water heater from Surgeon Plumbing between Jan. 1, 2009 and Dec. 31, 2010 will now be eligible for a tax credit equal to 30% of the full purchase and installation price up to a maximum of $1500.

Frequently asked questions about water heater tax credits.

When can I get a tax credit on my water heater?
Effective dates are: January 1, 2009 through December 31, 2010.

What water heaters and boilers Qualify?

The American Recovery and Reinvestment Act of 2009 signed on February 17, 2009, by President Obama has made significant changes to homeowner tax credits for specified energy-efficient home improvements including qualifying, residential water heaters and boilers. Some of the more significant changes include the extension of the tax credit through 2010 and the increase in the total available tax credit from 10% to 30%. When you purchase and install a qualifying water heater from Surgeon Plumbing between Jan. 1, 2009 and Dec. 31, 2010 will now be eligible for a tax credit equal to 30% of the full purchase and installation price up to a maximum of $1500.

Frequently asked questions about water heater tax credits.

When can I get a tax credit on my water heater?
Effective dates are: January 1, 2009 through December 31, 2010.

What water heaters and boilers Qualify?
Please view our information sheet to find out about qualifying water heaters and boilers. Click Here>>

What is my water heater or boiler tax credit amount?
30% of the full purchase and installation price up to a maximum of $1500

What are the guidelines to receive a water heater or boiler tax credit?
The water heater or boiler must be “placed in service” between January 1, 2009 and December 31, 2010. The IRS defines "placed in service" as when the product is ready and available for use.

  • The water heater or boiler must be installed in or on the taxpayer’s principal residence in the United States.

  • The tax credit is ONLY available for existing homes. Rentals do not qualify.

  • The maximum amount that a taxpayer may claim for all qualifying energy efficient home improvements including the purchase and installation of a water heater or boiler is $1,500 over the lifetime of the credit (2009 & 2010).

  • Water heaters or boilers installed in 2008 are not eligible for the tax credit.

How do I claim my water heater tax credit?

  • Purchase and install a qualifying water or boiler Save your proof of purchase along with a copy of the Manufacturer’s Certification Statement.

  • When filing your 2009 taxes, use IRS Form 5695 (2009 version) - it will be available late 2009 or early 2010. Consult a tax professional for further details

How do I apply for the tax credit? What tax form do I need for the energy efficiency tax credits?

  1. For products "placed in service" in 2009, you need to file the 2009 IRS Form 5695 and submit it with your 2009 taxes (by April 15, 2010).

  2. On the 2009 1040 form, the residential energy tax credit (from Form 5695) is claimed on line 52.

  3. For products "placed in service" in 2010, you would take the tax credit on your 2010 income taxes.


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 Water Heater Tax Credit NJ | Water Boiler Tax Credit | HVAC Tax Credit