Installing energy efficient water heater - tax credit

[Donald]

I am reading that "professional installation" is required to obtain the federal tax credit. Has anyone done the install themselves and still received the tax credit?

For the Delaware tax credit with my income I would need a family size of 20. And then the water heater would not be big enough.

 

[John105]

Are you even close? I mean if 18 or 19 getting to 20 is doable.

 

[zzyzzx]

I am reading that "professional installation" is required to obtain the federal tax credit.

Link please!

 

[Vitamin Yoda]

I installed a high efficiency water heater (natural gas) in 2019, and there was a state tax credit, somewhere between $250~$500. The "professional installation" would have been $4000 plus the cost of the water heater. I decided that I don't care about the tax credit, went down to Home Depot, and bought a Rheem tankless water heater, then went downtown, got a permit, and installed it myself, top to bottom, including vents, condensation line, and gas piping. Took a few half days to get it done, but it was well worth the savings IMHO.

 

[walterjay]

As best I can tell the installation must be done by a licensed contractor, proper permits obtained and inspected and approved by the licensing agency.

Some areas require that you use an approved contractor.

 

[Donald]

Sliding a 120V hybrid water heater into place and connecting the hot & cold water and plugging it in seems like a "not much involved install".

 

[Rand]

Sliding a 120V hybrid water heater into place and connecting the hot & cold water and plugging it in seems like a "not much involved install".

connecting drain line too but yeah I did it in less than an hour including a run to the local hardware.

 

[zzyzzx]

I don't see anything here that says it needs to be installed by a contractor:
https://www.irs.gov/instructions/i5695
What am I missing?

 

[walterjay]

My local utility kicks in a rebate for energy efficient equipment, but it must be installed by a licensed contractor with necessary permitting to receive the rebate.

 

[2005jettatdi]

Nothing in the tax code requires professional installation. But, what do I know, I am only a CPA.

 

[mrsilv04]

I could see why "professional installation" could be encouraged with a water heater.
What passes through it is something that you ingest on a daily basis.
Plus, with natural or LP gas involved... what could go wrong, other than a house exploding in the middle of the night?

 

[Aredeeem]

As best I can tell the installation must be done by a licensed contractor, proper permits obtained and inspected and approved by the licensing agency.

Some areas require that you use an approved

 

[Aredeeem]

I’m sure the rebate folks would protect themselves from liability by requiring permits/inspection etc. For every DIY skilled enough to do the job correctly there’s a half a dozen more who would blow up the house.

 

[Rand]

I’m sure the rebate folks would protect themselves from liability by requiring permits/inspection etc. For every DIY skilled enough to do the job correctly there’s a half a dozen more who would blow up the house.

why would they have liability? Also blowing up the house sounds dramatic do you think pluggin in a window air conditioner could blow up the house too?

Does anyone have actual proof/information that the federal rebate requires professional installation?

 

[Hall]

My local utility kicks in a rebate for energy efficient equipment, but it must be installed by a licensed contractor with necessary permitting to receive the rebate.

Ours does as well but had no restrictions on who installs it. In fact, the form has a box you check for self-install or contractor. Kinda annoyed that the unit I bought wasn't efficient enough though.... It was "3" units too low

 

[zzyzzx]

My local utility kicks in a rebate for energy efficient equipment, but it must be installed by a licensed contractor with necessary permitting to receive the rebate.

So that's a BGE requirement, not an IRS requirement.,

 

[Snagglefoot]

My advice is go go through the website as if you are applying for the rebate ( without actually going through with it). Some where along the way it may mention you need to use a “ licensed installer”.

Normally rebates from the government implies traceability for income tax. Plumbers hate it because they can’t work for cash and it forces some of the underground economy back above ground.

 

[Donald]

I am hoping for sales of hybrid water heaters
around Presidents Day. Guess it would be too much to hope for one on Valentine's Day? Here honey I got you a new water heater!!