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As provided for under the "Federal Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010" signed into law on December 17, 2010, the U.S. Internal Revenue Service (IRS) now provides consumers with federal tax credits on home improvements including specified energy-efficient home improvements including qualifying, residential water heaters, placed in service from January 1, 2011 through December 31, 2011 in a homeowner's primary residence, and meet the criteria of "Qualified Products" as set forth by Section 25C of the Internal Revenue Code.
The tax credit for qualifying energy improvements such as the installation of Rinnai tankless water heaters, is 10% of the full purchase and installation price up to a maximum credit of $300.
For more information on the bill, check out the U.S. Department of Energy website.