Green Daily

Did you install a more energy efficient water heater in 2007? If you did you, may be able to save up to $300 on your tax bill in tax credits. You can get the tax credit for a gas, oil or propane water heaters, as well as an electric heat pump water heater.

Only some tankless oil, gas and propane water heaters currently qualify, but if you installed one that does it will be 33% more efficient than current federal standards. To find water heaters that qualify check out the list at the Gas Appliance Manufacturing Association. Electric water heaters are twice as efficient as the current federal standard.

In order to qualify for the write offs, you must have a manufacturer's certification statement and your receipt. The water heater must be installed in your primary home. You can't take this write off if the installation was done in a second home or vacation home. If you don't have proof that your new water heater qualifies, contact the company that did the installation. If it does qualify, the installer should be able to supply you with a manufacturer's certification statement.

Want to save money next year?

Check out the Green Daily Guide to Home Energy Efficiency. Get money-saving tips, tricks, and how-to videos for every homeowner. Not only will you save on your utility bill, next year you may be able to write it off your taxes too if legislation now pending in Congress passes to extend the tax credits to 2008!