Making the switch to a tankless water heater can net you benefits like lower gas bills and endless hot water, but the initial investment can sometimes cause hesitation. Luckily, there are rebates and tax credits in place to help homeowners like you recoup some of their initial investment.
Monkey Wrench Plumbing, Heating & Air specializes in all things tankless water heaters, and we’ve been installing and servicing these machines for over 15 years in Los Angeles County and the surrounding areas. We keep tabs on yearly rebates and tax credit changes to keep you up to date with the most current options available.
In this article, we’ll let you know how you can file for a rebate on Takagi tankless water heaters and how to apply for a federal tax credit. By following these steps, you’ll be able to put a few dollars back in your pocket when you upgrade to a Takagi tankless water heater for the first time.
What Tankless Water Heater Qualifies for a Tax Credit?
It’s no secret that government websites can be difficult to navigate and find the information you’re after. Figuring out which tankless water heaters qualify for a tax credit is equally as confusing at times. Let’s clear the air by looking at some helpful information from the IRS regarding the residential energy-efficient property credit.
The IRS states that a tankless water heater qualifies for the tax credit since they fall under “any item of energy-efficient building property.”
Back in 2022, the credit offered homeowners $300 in tax credits. Now, the Energy Efficient Home Improvement Tax Credit, from the Inflation Reduction Act of 2022, dictates that select high-efficiency tankless water heaters are eligible for a tax credit of up to 30% of the cost of the tankless water heater and installation of up to $600. This bump effectively doubles the available tax credit compared to 2022.
How Do Tankless Water Heaters Qualify for Rebate Tiers?
To test and determine tankless water heater efficiency, the Department of Energy creates real-life conditions. From here, tankless water heaters earn a Uniform Energy Factor (UEF) rating.
UEF ratings of 0.95 or higher with Energy Star certification qualify tankless water heaters for the maximum rebate of $1,000. Moving to the mid-tier on the scale, UEF ratings of 0.87 to 0.94 with Energy Star certification earn tankless water heater owners $800. At the lowest tier, UEF ratings of 0.82 to 0.86 secure an $80 rebate for homeowners.
On April 1, 2023, the rebate for tankless water heaters rated between 0.82 and 0.86 UEF dropped to $80 from $600 for units purchased after April 1.
Takagi Tankless Water Heaters Qualifying for Rebate
Every major tankless water heater brand makes models of varying efficiency. Because of this structure, you can count on certain models falling into different tiers on the rebate scale.
While Takagi does not provide a readily available list of qualifying models, here are a few of the top Takagi tankless water heaters that match SoCal Gas’s specific criteria. This list may change over time due to alterations in rebate policies and participation.
$1,000 Takagi Tankless Water Heater Models
- TK-540X3-NEH
- TK-340X3-NIH
- TK-240x3-NEH
- T-H3J-OS-N
- T-H3-OS-N
- T-H3S-DV-N
- TK-540P-NEH
How to Apply for Los Angeles Tankless Water Heater Rebates
Filing for your Takagi tankless water heater rebate is simple. After just a few steps, you’ll be on track to earn up to $1,000 in rebates and up to $600 in federal tax credits. Follow the steps below to secure a return on your investment.
How to file your Takagi tankless water heater rebate:
- Upgrade to a high-efficiency Navien tankless water heater.
- Rebates are only available for those upgrading to a tankless water heater for the first time.
- Purchase your Takagi tankless water heater by December 31, 2024.
- Keep track of your dated receipts and invoices. These items may be required at some point in the process.
- Apply for a rebate on the SoCal Gas website here.
- Long Beach residents must follow a slightly different process and apply here.
- Submit your tankless water heater information and tax credit form while filing your taxes to apply for the maximum tax credit.
You should see a check between four to eight weeks after filing for a rebate. Should your application be cycled back due to issues like incorrect information, you’ll need to reapply and sit tight for another four to eight weeks.
Following the above steps could earn you up to $1,600 in rebates and tax credits, which is a timely return on investment.
Up to Speed on Takagi Tankless Water Heater Rebates
We’ve given you a look at how to file for a tankless water heater rebate and tax credit, along with which models qualify. Now, you can confidently file for a tankless water heater rebate and tax credit when the time comes. With the most recent changes to rebates and credits, there’s never been a better time to upgrade to a tankless water heater.
After 15-plus years of installing and servicing tankless water heaters in Los Angeles County and the surrounding areas, we’ve helped many homeowners save money by assisting them in securing a return on their initial investment. If you’re curious about upgrading to a tankless water heater, book a consultation using our online scheduler or one of the buttons below.
For those upgrading to a tankless water heater for the first time or those who would like to learn more about tankless water heaters before taking the plunge, download our Ultimate Guide to Tankless Water Heaters to help make the best decision for your home. If you’re curious about how Takagi stands up to other brands in the industry, read our full Takagi brand review to see where the company lands.
