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You can get
a credit on your Oregon income taxes for purchasing premium efficiency
water heaters, solar water heaters, and wastewater heat recovery
systems.
Eligible models are included on the Oregon Department of Energy list of qualifying systems. (See qualifying lists in right-hand column.) We update these lists as qualifying equipment comes on the market.
The tax credit is based on the amount of energy saved above standard models. The
tax credit is the amount noted on the list of qualifying equipment or
25 percent of the net purchase price of the equipment (not including
labor), whichever is less.
To qualify for a tax credit, you must have an Oregon
income tax liability. If you do not have an Oregon income tax
liability, you may choose to transfer your tax credit to an individual
who does. This is done by checking the Pass-through Option section on
the application form. More information is on the form.
The equipment must be located in an Oregon dwelling that is your primary or secondary residence to qualify for a tax credit.
Important: Applications for tax
credits must be received by the Oregon Department of Energy no later
than April 1 of the year following the purchase, even if the tax credit
is carried forward.
Water Heaters
Only premium efficiency water heaters are eligible for a tax
credit. The premium efficiency water heaters are tankless water heaters
(also called instantaneous, on-demand or point-of-use), heat pump water
heaters and combination ("combo") space and water heating systems (see
discussion below). Conventional tank-type water heaters are not efficient enough to qualify for a tax credit.
Qualifying tankless water heaters must have a minimum energy efficiency
rating of 80 percent. In comparison, a tank gas water heater in the
typical home is only 55 percent energy efficient. This means the
average homeowner will save about 40 percent of their annual energy
used for domestic hot water by installing a qualifying tankless water
heater. Additionally, qualifying tankless water heaters must have a
variable firing rate between no more than 24,000 BTU and at least
140,000 BTU. Electric water heaters must have a COP of at least 100%.
Solar Water Heating
You can get a tax
credit of up to $1,500 for buying a solar water heating system for your
home. Oregon´s certified solar contractors can pre-approve your tax
credit. Be sure to get an OG300-certified system that meets the Oregon
Solar Energy Industry Association tank standard.
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