Federal Tax credit for hot water heat pump questions.

[egghead2004]

I am about to buy the $1200 Geyser for heating my DHW.
Now, I a former HVAC guy, but no longer in business. I do not have a plumbers license.
When I built my home I installed all the heating and air conditioning and all of the domestic water lines, the plumber let me, he did all the drainage and pulled the permits, Mass laws.

Anyway, I want to be able to take advantage of the 30% federal tax credit, so this leads me to the following questions.


- Can I install this Geyser HWHP myself and claim the 30% credit on my taxes?

- If I have to hire a plumber to install it, does the tax credit also apply to his installation costs?

For instance, if he installs the Geyser and writes up a bill of $1600 (Geyser + $400 install cost.) Can I claim a credit of 30% of $1600?

For some reason there is way more info out there for photovoltaic systems...you'd think a simple HWHP would be easy...

 

[Titus]

As far as I can see, there are no requirements as to who installs the unit. If you install it yourself, I do not think adding in your labor cost will fly, by the way.

If you pay to have it installed, the installation cost is part of the overall cost. You can take 30% of the total cost, up to the $1500 maximum credit.

The Manufacturer's Certification statement, which you need, is here:
http://www.northrdt.com/images/GeyserTaxCertification.pdf

The unit is not Energy Star rated, but must meet Energy Star requirements of: "Same criteria as ENERGY STAR: Energy Factor >= 2.0" When you click through to Energy Star criteria you find...
"A maximum current rating of 24 amperes, voltage no greater than 250 volts, and a transfer of thermal energy from one temperature to a higher temperature level for the purpose of heating water. Unit must have "integrated" or "drop-in" configuration."
"ENERGY STAR Criteria............Energy Factor......First-Hour Rating......................Warranty..................................................Safety
Heat Pump Water Heaters.....EF >= 2.0.............FHR >= 50 gallons per hour.....Warranty >= 6 years on sealed system.....UL 174 & UL 1995"

Click through on the "FAQ on Water Heaters that qualify for the tax credit" and you find that,
"2) Electric Heat Pump Water Heaters are covered if they have an Energy Factor of at least 2.0. This is a new technology and currently there is only one model that qualifies on the AHRI list. More heat pump water heaters are expected on the market by the end of 2009.

* Tax credit is 30% of the cost, up to $1,500, including installation.
* All ENERGY STAR qualified heat pump water heaters will qualify. (None exist today.)"

So, there are no EnergyStar models. And the AHRI list has one unit as of April 27, 2009: AIRGENERATE LLC (The AirTap)
http://www.ahrinet.org/ARI/util/showdoc.aspx?doc=1334

All this leaves me doubting as to whether the Geyser unit truly qualifies....

My advice would be to rely on the manufacturer's certification and take the credit. (However, I am not your accountant. My advice is "unofficial".)


All my info was found at EnergyStar:
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#c4