There is no credit for other kinds of electric water heaters.

The fuel economy credit depends on the improvement of the fuel economy over the baseline. Fuel savings are calculated as 120,000 miles divided by baseline mpg minus 120,000 miles divided by vehicle mpg. This is a one time deduction and must be taken in the year that the hybrid car is originally used.

All the improvements must be installed in or on the taxpayer’s principal residence in the United States. The vehicle must be used predominantly within the United States. There is no credit for other kinds of electric water heaters. This is about 20 percent more efficient than the current federal standard. The conservation credit depends on the estimated lifetime fuel savings, expressed in gallons of gasoline. Evidence that the vehicle does not exceed maximum power standards. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit. Condo and co-op improvements are apportioned to the owners. Statement that the vehicle complies with state air quality control laws.

Natural gas, propane, or oil water heaters must have an energy factor EF of at least 0. Only some tankless water heaters currently reach this efficiency level. Energy-efficient refrigerators, clothes washers, and dishwashers. Fuel cells for homes are not yet commercially available. This is more than twice as efficient as the current federal standard.

Who gets it? Individuals who install specific energy-efficient home improvements. In addition, windows, doors, insulation, and roofs must be expected to last at least five years a two-year warranty is sufficient to demonstrate this.