Savings and Rebates

Tankless Water Heater Rebates

Listing of state and federal rebates regarding tankless water heaters.

Colorado Residents

Xcel Energy, as part of its effort to cut energy demands by its customers by 125 megawatts and cut natural gas use by more than 7.2 million therms, is offering its Colorado customers up to $50 for the installation of gas tankless water heaters during the 2009 — 2011 calendar year.

Rebates are available to Xcel Energy natural gas residential customers in Colorado buying qualifying, new natural gas tankless water heaters.

Links to More Information:

California Residents

Save up to $200 on Tankless Water Heaters.

The SoCal Gas Company offers a rebate on qualifying tankless water heaters.

  • $200 rebate for models with an Energy Factor of 0.90 or higher
  • $150 rebate for models that meet a minimum Energy Factor of 0.82
  • Must be replacing a conventional tank-type water heater

More information can be found at

All Other Visitors

All other residents of the U.S.A., click HERE

Tankless Water Heater Tax Credits

Tankless Tax Credits Expired on December 31, 2011!

The following is for information purposes in filing your 2011 taxes. Local tax credits and rebates may still be available.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extends federal tax credits for all qualifying energy efficient residential tankless water heaters through 2011.


  • Receive up to $500 tax credit.
  • Effective for units placed into service January 1st, 2011 — December, 31st, 2011
  • Tankless water heaters must have an energy factor of at least 0.82 to qualify


Tax credits are available to consumers for $500, for fiscal years 2006-2011 combined.

  • The Tankless Water Heater must be placed into service between January 1, 2011 and December 31, 2011
  • The Tankless Water Heater must be installed in the taxpayers’ principal residential address in the United States
  • Only existing homes qualify for the tax credit
  • There is an overall cap of $500 for fiscal years 2006-2011 combined


  • Choose a qualifying tankless water heater (see list) that suits your needs.
  • Manufacturer’s Certification Statement is required.
  • Save your receipts and Manufacturer’s Certification Statement for tax purposes.
  • Use IRS Form 5695.
  • Improvements must be “placed into service” (this generally refers to the installation, not the purchase) within the specified dates.


Consult a tax professional for more information.

See the DSIRE database of state incentives, or contact your state energy office or local utility service providers for more information about tax credits and rebates in your area.

For more information on the federal tax credits visit ENERGY STAR at