If you’re making the change to a tankless water heater from a tank-style one, then you’ve got a lot to look forward to in terms of benefits. From lower gas bills to endless hot water, there’s a lot to warrant the upfront investment. But for those interested in recouping some of that investment, there are rebates and tax credits available for Navien tankless water heaters.

After 15-plus years of installing tankless water heaters in Los Angeles County and its surrounding cities, we’ve become familiar with the rebate and tax credit process. While some aspects of these rebates and credits may change from year to year, the process remains relatively similar.

Before we dive fully into rebates, download our Navien Tankless Water Heater Guide to learn about Los Angeles rebates, common error codes, and much more.

Now, in this article, we’ll fill you in on how to file a rebate for Navien tankless water heaters as well as how to apply for federal tax credits. After reading this article, you’ll know how to file a rebate and/or tax credit easily, which will save you time and money.

What Tankless Water Heater Qualifies for a Tax Credit?

Government sites can be confusing to navigate when you’re looking for specific information. Trying to figure out if a tankless water heater is eligible can also be tricky to figure out. Let’s look at the information posted by the IRS surrounding the residential energy-efficient property credit to make sense of things.

According to the IRS, tankless water heaters qualify for the tax credit by being designated as “any item of energy-efficient building property.”

In 2022, this credit granted homeowners $300 in tax credits, but this changed in 2023. The Energy Efficient Home Improvement Tax Credit, from the Inflation Reduction Act of 2022, details that some high-efficiency tankless water heater models qualify for a tax credit of up to 30% of the cost of the tankless water heater and installation of up to $600. Compared to 2022, this essentially doubles to potential credit.

How Do Tankless Water Heaters Qualify for Rebate Tiers?

The Department of Energy simulates real-life conditions to test and determine tankless water heater efficiency. After testing, the tankless water heater or heaters receive a Uniform Energy Factor (UEF) rating.

Tankless water heaters that receive a UEF rating of 0.95 or higher and Energy Star certification will qualify for the maximum rebate of $1,000. Going down the scale, a UEF rating of 0.87 to 0.94 with Energy Star certification nets you $800. On the lower end, a UEF rating of 0.82 to 0.86 grants homeowners an $80 rebate.

After April 1, 2023, the rebate for tankless water heaters rated between 0.82 and 0.86 UEF will drop to $80 from $600 if purchased after April 1.

Navien Tankless Water Heaters Qualifying for Rebate

It’s no surprise that different tankless water heater models vary in terms of efficiency. This means that there are certain tiers of qualified high-efficiency tankless water heaters fall into. There are three rebated tiers.

The highest efficiency tier qualifies for the maximum $1,000 rebate. There aren’t as many models in this tier as in the mid-tier, but these models are some of the more popular options. Looking at the mid-tier options, this Navien tankless water heater will earn you $800 back in rebates. Navien does not have any tankless water heater models that qualify for the lower tier, which otherwise earns homeowners $80 back.

Let’s break things down tier by tier based on which models match SoCal Gas’s criteria. This list may change over time due to alterations in rebate policies.

$1,000 Navien Tankless Water Heater Models

  • NPE240A2/S2
  • NPE210A2/S2
  • NPE180A2/S2

$800 Navien Tankless Water Heater Models

  • NPE150S2

How to Apply for Los Angeles Tankless Water Heater Rebates

Getting your Navien tankless water heater rebate is easier than it sounds. After checking a few boxes, you’ll be well on your way to grabbing up to $1,000 in rebates and up to $600 in federal tax credits. Stick to the steps below to ensure an extra return on your investment.

How to secure your Navien tankless water heater rebate:

  • Upgrade to a high-efficiency Navien tankless water heater.
    These rebates are only available for those upgrading to a tankless water heater for the first time.
  • Be sure you purchase your Navien tankless water heater by December 31, 2024.
    Hold on to all of your dated receipts and invoices, just in case they are required at any 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 maximum savings.

You should expect a check in about four to eight weeks after you file for a rebate. In the case of your application being denied due to something like incorrect information, you’ll have to resubmit and wait for another four to eight weeks.

Sticking to the above steps could help you pocket up to $1,600 in rebates and tax credits, meaning a somewhat timely return on your upfront investment.

Up to Speed on Navien Tankless Water Heater Rebates

We’ve filled you in on the rebate process, what qualifies tankless water heaters for tax credits and rebates, and which models qualify. With this information, you can confidently approach all things tankless water heater rebates and tax credits. After the most recent changes to the federal tax credit rates, this year is an ideal time to upgrade.

After over 15 years of installing tankless water heaters in Los Angeles County and the surrounding areas, we’ve seen countless homeowners save money come tax season while getting a quick return on their upfront investment. If you’re interested in upgrading to a tankless water heater, reach out using our tankless water heater service page or one of the buttons below.

Contact A Professional

If you’re making the change to a Navien tankless water heater for the first time, download our Navien Tankless Water Heater Guide to help make the best decision for your home. For those who want to know more about Navien but aren’t ready to dive head-first into researching, read our full Navien brand review to see how the company measures up.

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