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, Friedrich® heat pump water heaters help builders earn 45L tax credits through new construction design flexibility and high efficiency ratings.
Qualifying Water
and Space Heaters
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 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.
Note: Qualifying water heating products and corresponding credit limits are based on finalized CEE (Consortium for Energy Efficiency) highest product category tiering as of 12/20/22. We will communicate details on qualified equipment as new information becomes available.
Program status and funding may change.
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 Friedrich® 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.