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 such as Rinnai tankless water heaters and high efficiency heating and air conditioning systems. The tax credit for qualifying energy improvements has been modified from $300 to 30% of the full purchase and installation price up to a maximum credit of $1500. In addition these tax credits for 2009 have been extended through Dec. 31, 2010.

For more information on the bill, check out the U.S. Department of Energy website.

What is a tax credit?

A Energy Tax Credit is not received when you buy the product, like an instant rebate. A Tax Credit on Water Heaters is claimed on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount paid in.

Tax credits vs. tax deductions.

In general, a tax credit is more valuable than a similar tax deduction. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions, such as those for home mortgages and charitable giving, for example, lower your taxable income. If you are in the 30 percent tax bracket, your income tax is reduced by 30 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit.

For more information on Federal Tax Credits for Energy Efficiency, click here.

Xcel Energy Rebates

Xcel energy offers an array of attractive rebates for the purchase of furnaces, air conditioners, heat pumps, and water heaters for their customers.

For more information on Xcel Energy rebates for Energy Efficiency, click here.

Denver Water Consevation Rebates

Denver Water rebates help you replace inefficient fixtures with new, water-efficient fixtures. Residential customers can receive rebates for buying and installing qualifying high-efficiency toilets, rain sensors and other water-efficient fixtures. Commercial customers can receive rebates for sub-meters, irrigation devices, high-efficiency toilets and other devices. Rebates are even available for new-construction projects.

For more information on Denver Water rebates for water conservation, click here.