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| Heat Pump Water Heater Category | Previous Water Heater/ Replacement Scenario | Qualifying UEF Based on Highest CEE Tier | Energy Efficient Home Improvement Tax Credit |
|---|---|---|---|
| 240V 30 & 15 Amp Hybrid Electric Heat Pump | Standart Electric Tank | ≥ 3.3 | 30% of product + installation cost, up to $2000 |
| All 120V 15 Amp Plug-in Heat Pump Models | Standart Gas Tank | ≥ 2.20 | 30% of product + installation cost, up to $2000 |
| High Efficiency Gas Water Heater Category | Previous Water Heater/ Replacement Scenario | Qualifying UEF Based on Highest CEE Tier | Energy Efficient Home Improvement Tax Credit |
|---|---|---|---|
| Gas-Fired Tankless Rheem® IKONIC SR-Series | Standart Gas Tank | ≥ 0.95 | 30% of product + installation cost, up to $600 |
| Gas-Fired Storage Maximus™ Super High Efficiency Gas Models | Standart Gas Tank | ≥ .86 | 30% of product + installation cost, up to $2000 |
| Boiler Category | Previous Water Heater/ Replacement Scenario | Qualifying UEF Based on Highest CEE Tier | Energy Efficient Home Improvement Tax Credit |
|---|---|---|---|
| Gas-Fired ThermaForce Super High-Efficiency Boilers | Standart Gas Boiler | ≥ 90% | 30% of product + installation cost, up to $600 |
| Gas-Fired ThermaForce Super High-Efficiency Combi Boilers | Standart Gas Combi Boiler | ≥ 90% | 30% of product + installation cost, up to $2000 |
| Electric Upgrade | Replacement Scenario | Requirements | Energy Efficient Home Improvement Tax Credit |
|---|---|---|---|
| Panelboard, sub-panelboard, branch circuits, or feeder | Must be installed in conjunction with a qualified energy project (e.g. HPWH, HP, AC); replaced load capacity < less then 200 Amps | ≥ 200 Amps | 30% of installation up to $600 |
| Replacement Water Heater Model | Previous Water Heater/ Replacement Scenario | Product Requirements | Incentives |
|---|---|---|---|
| Hybrid Electric Heat Pump | Standart Electric Tank | ENERGY STAR® Certified | $700 Mail-in Rebate National Grid-NY State |
| Hybrid Electric Heat Pump | Standart Electric Tank | ENERGY STAR® Certified | up to $3000 Rebate Roseville CA |
| Hybrid Electric Heat Pump | Standart Electric Tank | ENERGY STAR® Certified | up to $2000 2023 25C Federal Tax Credit |
Within the state of California, several rebate programs offer initiatives designed to accelerate heat pump water heater adoption. Enrolled contractors who replace a gas/electric water heater with a qualifying Rheem® Heat Pump Water Heater can earn incentives per installation.
Please see the table below for available California contractor incentives. As a program's status and funding may change, please verify details through the links provided frequently. This list is not exhaustive.
| Program | Rebate | Can Combine With | Who Applies |
|---|---|---|---|
| BayREN HPWH Contractor Incentive Program | $1,000 | / | Contractor |
| SMUD | $2,500 | / | Contractor |
| City of Roseville | $500.00 | $2,500 SMUD | Contractor |
| Central Coast Community Energy | $3,300 - $3,800 | / | Contractor |
| TECH Clean California HPWH Incentive Program | $1,000,00 | / | Contractor |
Smart decisions about a home’s water heater can help homeowners live more comfortably, save energy and protect the planet—all at the same time.
Our comprehensive suite of high efficiency products qualifies for ENERGY STAR 5.0® certification, federal and local incentive programs and residential 25C tax credits. In addition, Rheem® heat pump water heaters help builders earn 45L tax credits through new construction design flexibility and high efficiency ratings.
The Inflation Reduction Act of 2022 (IRA) is a series of home energy programs featuring efficiency and electrification tax credits and rebates. Beginning in 2023, the expanded version of 25C, now called the Energy Efficient Home Improvement Tax Credit (under the Inflation Reduction Act of 2022), will provide up to $2,000 in tax credits for qualified high efficiency water heaters as well as credits for electrical upgrades. Unlike the existing program, the expanded 25C tax credit has generous annual limits (not lifetime limits), meaning that the same customer could receive the credit for qualified energy efficient upgrades annually. This expansion will extend the program out to 2032 (see Builder Incentives section for 45L tax credit details).
As states and local governments adopt strict carbon emissions reduction targets, contractors and plumbers will require a range of solutions to meet new building codes. We offer a selection of heat pump and condensing gas water heaters that help you meet building codes and efficiency standards without compromising your customers’ comfort. Our water heaters are designed to maximize HERS® building ratings, achieve certifications such as ENERGY STAR® and qualify for installer high efficiency incentive programs.
Ask your local utility and state for available high efficiency water heater incentive programs in your area.
More information about available homeowner tax credits and local rebates are available the Residential Incentive section above.
