Quick Steps to find your new residential water heater

-Replace your old water heater with an ENERGY STAR® electric or gas model and help protect your finances from raising energy costs. Water heating accounts for ~20% of residential energy use.

-The Federal tax credits have expired, but don't despair....Claim a rebate from your electric or gas Utility and - if you choose an electric Heat Pump Water Heater - get an up to $1,750 instant discount from your State energy organization (where available).

Step 1: Check what your have - How to read your water heater rating plate.

Step 2: Consider an ENERGY STAR® model

“Your home’s water heater uses more energy than your refrigerator, clothes washer, dishwasher, and dryer combined!” 

Source ENERGY STAR®: https://www.energystar.gov/products/energy_star_home_upgrade/super_efficient_water_heater

Step 3: Pick your fuel type; Consider electrification options:

Electric Water heater
gas water heater
Electrification Options

Step 4: If you opt for an electric Heat Pump Water Heater or a Tankless Natural Gas Water heater, Check out Utility rebates in Your State:

Prominent Utility Rebates for Electric Heat Pump Water Heaters in Your State
Prominent Utility Rebates for Tankless Gas Water Heaters in your State

Step 5: Check out if your State offers an instant discount on electric Heat Pump Water Heaters (up to $1,750) and other energy upgrade incentives (funded by the Inflation Reduction Act of 2022) and if you are eligible based on your income:

Check if you qualify to the State instant discount up to $1,750

Step 6: Look for local qualified plumbing professionals.

We invite you to fill-in the form below. We will connect you with maximum 3 qualified installers in your State who typically quote a competitive standard install flat price before stepping into your home. If your Utility offers a rebate that you can take advantage of we will make the Contractors aware. If your State has launched its HEAR discounts we will exclusively contact participating Contractors if you are interested by a Heat Pump Water Heater. By clicking “submit” on the form below, you provide your express written consent to be contacted by up to the  3 Contractors regarding your quote request for a Heat Pump Water Heater or a Tankless Gas Water Heater. You agree to receive communications regarding a water heater quote via phone, text, or email, including the use of automated technology, even if you are on a Do Not Call list. Consent is not a condition of purchase.

Please input a valid email where you can be easily contacted
Please input your zip code
Please indicate where your existing water heater is currently located in your residence
Say “Yes” if you have applied and received a voucher from your State to discount upfront your next Heat Pump Water Heater purchase
If you have received a voucher from your State, Indicate the face value of the State voucher that you have received to discount upfront next Heat Pump Water Heater purchase
Your residence type
Heat Pump Water Heaters pull heat from the localized surrounded space and need at least 10′ x 10′ to operate efficiently
Heat Pump Water Heaters help dehumidify the space by pushing our cool dry air and creates non acidic condensate (about 2 quarts/day) that needs to be drained out
Examples: 40, 50, 80 This will help properly the Contractor size your new Heat Pump Water Heater
Examples: 100, 200 This is in the case you are replacing a gas water heater. The size of your panel (and the available incentives) will help the Contractor quote upfront a 240V or 120V Heat pump Water Heater with or without electrical panel upgrade
This is in the case you are replacing a gas water heater. The size of your panel (and the available incentives) will help the Contractor quote upfront a 240V or 120V Heat pump Water Heater with or without electrical panel upgrade
The Contractor will confirm if your Utility offers a rebate for the Heat Pump Water Heater that is being quoted

Legal Disclaimer:

NewWaterHeaterDecisions.com is a marketing and lead generation platform, not a licensed contractor. All installation services, structural modifications, and electrical work are performed solely by independent contractors who maintain active licenses with the State. NewWaterHeaterDecisions.com does not provide bids, perform construction, or guarantee the final pricing offered by independent contractors. The $1,750 HEAR discount for Heat Pump Water Heaters (and other eligible measures) is a federal program administered by each participating State; eligibility is determined by household income and program availability at the time of installation.

Resources: Details on the Federal tax credit that expired in 2025 - Heat Pump water heaters - For tax filing in 2026 of the 2025 income year.

“Heat pumps that meet or exceed the CEE highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed, and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year. Costs may include labor for installation.

Qualified property includes new:

  • Electric or natural gas heat pumps
  • Electric or natural gas heat pump water heaters
  • Biomass stoves and boilers”

Reference: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

Pick a 240V integrated Heat Pump water heater model with a Universal Energy Factor (UEF) of 3.3 or higher. The requirement for split system and 120V 15A Heat Pump water heaters is a UEF of 2.2 or higher.
Reference CEE – Consortium for Energy Efficiency Residential Electric Water Heating Specification: https://cee1.my.site.com/s/resources?id=a0V2R00000sUQd1

For example, the 240V ACiQ® Heat Pump water heaters qualify for the Federal tax credit. The 50 Gallon model ACIQ-50-HP-WH has a UEF of 3.75 and the 80 Gallon model ACIQ-80-HP-WH has a UEF of 4.0.
Reference:
https://www.energystar.gov/productfinder/product/certified-heat-pump-water-heaters/results?formId=b16b4f32-abfa-4053-b6ed-d5c36ce41c97&scrollTo=542&search_text=&low_price=&high_price=&type2_filter=&brand_name_filter_proxy=ACIQ&brand_name_isopen=0&markets_filter=United+States&zip_code_filter=&product+types+to+select=Select+a+Product+Category&sort_by=uniform_energy_factor_uef&sort_direction=desc&page_number=0&lastpage=0&brand_name_filter=ACIQ

Consult with your tax professional if you have questions.

IRS Qualified Manufacturer (QM) codes for inclusion as needed in the Federal tax returns for tax year 2025:
-A. O. Smith: A5X5
-Midea (Manufacturer of the ACiQ Heat Pump water heaters): X7Z8

Resources: Details on the Federal tax credit that expired in 2025 - Gas water heaters - For tax filing in 2026 of the 2025 income year

“Residential energy property that meets or exceeds the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed qualifies for a credit up to $600 per item. Costs may include labor for installation”.

Qualified property includes new:

  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Natural gas, propane, or oil furnaces and hot water boilers”

Reference: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

-Pick a residential gas tank water heater between 20 and 55 gallons with a Universal Energy Factor (UEF) of 0.81 or higher (medium draw pattern) or 0.86 or higher (high draw pattern). 
-Pick a residential gas tank water heater larger than 55 gallons with a UEF of 0.86 or higher (high draw pattern).
-Pick a residential tankless gas water heaters with a UEF of 0.95 or larger.
Reference CEE – Consortium for Energy Efficiency Residential Electric Water Heating Specification: https://cee1.my.site.com/s/resources?id=a0V7V00000Ke9Wy

IRS Qualified Manufacturer (QM) codes for inclusion as needed in the Federal tax returns for tax year 2025:
-A. O. Smith: A5X5
-Noritz: K2P9

Consult with your tax professional if you have questions.