Skip Navigation Links Home » Revenue » Product Type » Gas, Oil, Propane Water Heater

Product Category - Water Heaters
Product Type - Gas, Oil, Propane Water Heater
Federal Tax Credit Specification
Montana Tax Credit Specification
Energy Factor >= 0.82 or a thermal efficiency of at least 90%.
For investments in products installed prior to July 1, 2010
Replacement
The replacement must have a higher energy rating than the water heater being replaced. 
If the replacement water heater is of a different style or type, the replacement must meet the new construction standards below.
New construction
Indirect
    high efficiency with a minimum of 2 inches of foam insulation
Demand or instantaneous gas-fired
    0.82 or greater energy factor and electronic ignition
 
F  For investments in products installed on or after July 1, 2010
E  Energy Factor >= 0.82 or a thermal efficiency of at least 90%
Federal Tax Credit
Montana Tax Credit
30% of cost, up to $1,500*
25% of cost, up to $500**
Prior to July 1, 2010, if the replacement water heater is of a different style or type, only the cost of exceeding current IECC construction standards adopted by the Department of Labor and Industry qualify for the credit. For water heaters installed on or after July 1, 2010 meeting the specifications listed above, the entire cost of the installation qualifies for the credit.
Federal Notes
Montana Notes
There are currently no ENERGY STAR qualified gas storage tank or gas condensing water heaters that qualify.
Unlike the federal credit, the Montana credit is allowed for installation in dwellings, not only the taxpayer’s principal residence.
*     Subject to a $1,500 maximum per homeowner for all improvements combined.
**    Subject to a $500 annual maximum per taxpayer per building for all improvements combined.