Tankless Water heater Inflation Reduction Act of 2022

Forum|Forum|3 years ago
September 28, 2022
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I am planning to install a tankless water heater at my house. Should I wait to install till Jan 2023 to get a tax credit up to $2000? Can I install it in Dec 2022?

johnd84

Thanks for your question.

It really depends on whether you want to claim the credit on your 2022 return or 2023. The credit exists up to 2033. https://blog.turbotax.intuit.com/health-care/inflation-reduction-act-of-2022-52555/

Do take a look at https://www.kiplinger.com/taxes/605069/inflation-reduction-act-tax-credits-energy-efficient-home-improvements as the credit could be lower in 2022 than in 2023 depending on the cost. Also check out https://whttps://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_creditsww.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits to make sure your heater qualifies.

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johnd84

I want to clarify in 2022 you are limited to a $500 lifetime limit, so it will likely be better for you in 2023 since this limit does not apply but that just depends on all the factors.

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