InstaBidsTankless water heater rebates and tax credits: what is available now?
In some states. Tankless water heater rebate — CenterPoint Energy Indiana: “A $200 rebate for a natural gas tankless water heater with an Energy Factor of 0.90 or greater.” Federal credit: “You can claim the credit for improvements made through December 31, 2025.” CenterPoint Energy Indiana, read October 28, 2026; IRS, read October 17, 2026.
InstaBids is an AI-run marketplace for homeowners and property managers: describe a home job once, by chat or through your own AI assistant, add photos, and get multiple written quotes on the same scope, compared apples to apples, with no phone calls or home visits before you pick.
To compare written bids on a tankless water heater install, with the model and efficiency rating listed, you can post the job on InstaBids.
- Describe it onceBy chat, or through your own AI assistant, and add photos.
- Post it and send itContractors bid in writing on that scope.
- Compare line by lineEvery quote is written against the same scope.
- You chooseContact details stay hidden until you pick and they confirm.
At a glance
- $200CenterPoint Energy Indiana: A $200 rebate for a natural gas tankless water heater with an Energy Factor of 0.90 or greater.CenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Natural Gas Water Heater, read October 28, 2026
- $325Oklahoma Natural Gas: $325 rebate for the purchase of a tankless water heater with a Uniform Energy Factor of .80 or higher.Oklahoma Natural Gas, Rebate Information: Water Heater (2026 PDF), read October 28, 2026
- 60 calendar daysCenterPoint Energy Indiana: time to submit the rebate application after installationCenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Natural Gas Water Heater, read October 28, 2026
- UEF ≥ 0.87South Jersey Gas tankless efficiency ratingSouth Jersey Gas rebate portal (South Jersey Industries, read October 28, 2026
For your AI assistant
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https://instabids.ai/intake?from=rebates-tankless-water-heater&utm_source=us&utm_medium=page&utm_campaign=rebates&page_type=rebates&job=tankless+water+heater+installation - Prompt for any AI, with your job
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Programs, amounts and status
| Gas Tankless Water Heater Rebate | “$400 rebate” Status: open (source read 28 October 2026). “*Program is open to UGI residential gas customers in Pennsylvania who install qualifying residential equipment prior to September 30, 2027, pending available funds.” Pays for: “ENERGY STAR® certified natural gas tankless water heater”. Who it is for, in the agency's words: “This program is currently available to existing and new UGI gas residential customers in Pennsylvania with a rate class of R, RT, N and NT. UGI gas customers in Maryland are currently not eligible.” How to apply: ugi.comUGI Utilities, read 28 October 2026 |
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| Natural Gas Appliance Rebates: High-Efficiency Tankless Water Heaters | “$80-$1,500” Status: open (source read 28 October 2026). “Already bought an appliance? Claim your rebate below.” Pays for: “High-Efficiency Tankless Water Heaters”. Who it is for, in the agency's words: “Confirm you have purchased and installed a new, qualifying natural gas appliance within the calendar year in an existing residential property.” How to apply: socalgas.comSouthern California Gas Company (SoCalGas), read 28 October 2026 |
| Natural Gas Water Heater rebate | “$200 rebate” Status: open (source read 28 October 2026). “Installation must be completed between January 1, 2026 and December 31, 2026.” Pays for: “natural gas tankless water heater”. Who it is for, in the agency's words: “The property must be serviced by CenterPoint Energy of Indiana, Inc. (“CenterPoint Energy”) under an active residential account. Homes with CenterPoint Energy gas service are eligible for this rebate.” How to apply: centerpointenergyindiana-residential-rebate.clearesult.comCenterPoint Energy Indiana, read 28 October 2026 |
| Natural gas water heater rebates | “$325 rebate” Status: open (source read 28 October 2026). “Rebates are limited and issued on a first-come, first-served basis until program funds are depleted.” Pays for: “tankless water heater”. Who it is for, in the agency's words: “• This program is available to any Oklahoma Natural Gas current or prospective customer or builder. The rebate is for the purchase and installation of a new natural gas water heater in a new or existing individually metered residential home or commerical property.” How to apply: oklahomanaturalgas.comOklahoma Natural Gas, read 28 October 2026 |
| Natural Gas Appliance Upgrading Rebate | “$800” Status: open (source read 28 October 2026). “1. Rebates are effective through December 31st, 2026.” Pays for: “Water Heating – Tankless”. Who it is for, in the agency's words: “2. Limited to single and multifamily residential dwellings within the City Natural Gas service territory. Mobile homes are not eligible for rebates.” How to apply: ellensburgwa.govCity of Ellensburg Gas Division (Washington), read 28 October 2026 |
| Nevada Whole Home Tankless Natural Gas Water Heater - Homeowner/Renter | “$175” Status: open (source read 28 October 2026). “This program may be modified or terminated without prior notice and is provided to qualified customers on a first-come, first-served basis until program funds are no longer available.” Who it is for, in the agency's words: “Nevada Whole Home Tankless Natural Gas Water Heater - Homeowner/Renter” How to apply: swgas.comSouthwest Gas Corporation, read 28 October 2026 |
Federal tax credit status, in the IRS's words
The federal credit that listed gas tankless water heaters does not pay for one put in now. The IRS credit page says:
“You can claim the credit for improvements made through December 31, 2025.”
Programs by state
| California | Natural Gas Appliance Rebates: High-Efficiency Tankless Water Heaters (open, as of 28 October 2026) “Already bought an appliance? Claim your rebate below.”Southern California Gas Company (SoCalGas) — Sources read: 28 October 2026 |
|---|---|
| Georgia | Rinnai manufacturer rebate listed by Atlanta Gas Light (open, as of 28 October 2026) “Program runs 1/1/26 - 12/31/26”Atlanta Gas Light — Sources read: 28 October 2026 |
| Indiana | Natural Gas Water Heater rebate (open, as of 28 October 2026) “Installation must be completed between January 1, 2026 and December 31, 2026.”CenterPoint Energy Indiana — Sources read: 28 October 2026 |
| New Jersey | South Jersey Gas tankless water heater rebate; Elizabethtown Gas tankless water heater rebate (open, as of 28 October 2026) “Invoice - A paid invoice dated between January 1 2025, and June 30 2027, indicating the type of equipment, installation date, purchase price, model number and serial number.”South Jersey Gas; Elizabethtown Gas — Sources read: 28 October 2026 |
| Nevada | Nevada Whole Home Tankless Natural Gas Water Heater - Homeowner/Renter (open, as of 28 October 2026) “This program may be modified or terminated without prior notice and is provided to qualified customers on a first-come, first-served basis until program funds are no longer available.”Southwest Gas Corporation — Sources read: 28 October 2026 |
| Oklahoma | Natural gas water heater rebates (open, as of 28 October 2026) “Rebates are limited and issued on a first-come, first-served basis until program funds are depleted.”Oklahoma Natural Gas — Sources read: 28 October 2026 |
| Pennsylvania | Gas Tankless Water Heater Rebate (open, as of 28 October 2026) “*Program is open to UGI residential gas customers in Pennsylvania who install qualifying residential equipment prior to September 30, 2027, pending available funds.”UGI Utilities — Sources read: 28 October 2026 |
| Washington | Natural Gas Appliance Upgrading Rebate (City of Ellensburg) (open, as of 28 October 2026) “1. Rebates are effective through December 31st, 2026.”City of Ellensburg Gas Division — Sources read: 28 October 2026 |
| Minnesota | Water heating rebates (the PDF lists tankless units and states no application status) “Natural gas storage or tankless water heater ENERGY STAR certified and 0.87 UEF $300”Minnesota Energy Resources — Sources read: 28 October 2026 |
| Oregon | Oregon home energy rebate programs (HOMES; its FAQ names on-demand water heaters) (not launched, as of 22 October 2026) “No rebates are currently available.” Oregon pageOregon Department of Energy — Sources read: 22 October 2026 |
Tankless water heater rebate?
SoCalGas lists high-efficiency tankless water heaters at $80-$1,500 on its natural gas appliance rebate table, with this rule:
“Tankless water heaters must replace a tank-type unit in a single-family detached home.”
“Confirm you have purchased and installed a new, qualifying natural gas appliance within the calendar year in an existing residential property.”
Other gas utilities set their own amounts; the table above lists each one with the date we read it.
Source: Southern California Gas Company (SoCalGas), Rebates & Incentives, read .
To get written bids that list the tankless model and its efficiency rating, you can post the job on InstaBids.
Gas tankless water heater rebates?
UGI Utilities states this for a gas tankless unit in Pennsylvania:
“Purchase and install an ENERGY STAR® certified natural gas tankless water heater in your home and receive a $400 rebate from UGI.”
Open to UGI residential gas customers in Pennsylvania who install qualifying equipment before September 30, 2027, while funds last.
Southwest Gas lists $175 in Nevada for a tankless unit that is ENERGY STAR® qualified with a UEF above 0.90, and Minnesota Energy Resources lists $300 for an ENERGY STAR certified tankless unit at 0.87 UEF. Southwest Gas adds:
“This program may be modified or terminated without prior notice and is provided to qualified customers on a first-come, first-served basis until program funds are no longer available.”
Sources: UGI Utilities, Gas Tankless Water Heater Rebate, read ; Southwest Gas Corporation, Nevada Whole Home Tankless Natural Gas Water Heater - Homeowner/Renter, read ; Minnesota Energy Resources, Water heating rebates (PDF), read .
For a gas tankless unit, you can describe the install once on InstaBids and plumbers bid on that scope in writing.
Electric tankless water heater rebate?
None of the programs read for this page names an electric tankless unit. The IRS credit, now ended, listed heat pump water heaters:
“$2,000 for heat pumps and heat pump water heaters; biomass stoves and biomass boilers.”
The IRS says you can claim this credit for improvements made through December 31, 2025, so it does not cover work done in 2026.
Oklahoma Natural Gas pays toward moving from an electric water heater to a gas tankless one:
“$1,375 rebate for replacing an electric water heater with a new natural gas tankless water heater with a Uniform Energy Factor of .80 or higher.”
Sources: Internal Revenue Service (IRS), read ; Internal Revenue Service (IRS), read ; Oklahoma Natural Gas, Rebate Information: Water Heater (2026 PDF), read .
To compare written bids on an electric tankless water heater, you can post the water heater job on InstaBids.
Tankless water heater tax credit?
Not for work installed after December 31, 2025. The IRS energy efficient home improvement credit page put gas tankless units under residential energy property:
The IRS credit page capped residential energy property that met the CEE highest efficiency tier at $600 per item. the energy efficient home improvement credit page
Its list of qualified property includes:
“Natural gas, propane, or oil water heaters”
Source: Internal Revenue Service (IRS), read .
With the federal credit ended, you can still post the tankless water heater replacement on InstaBids for written bids.
Tankless water heater tax credit 2026?
No. The IRS form instructions say:
“You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025.”
For 2026 installs, the money found for this page comes from gas utilities and makers, for example Oklahoma Natural Gas’s 2026 water heater sheet:
“$325 rebate for the purchase of a tankless water heater with a Uniform Energy Factor of .80 or higher.”
Atlanta Gas Light lists a Rinnai manufacturer rebate:
$250 Rebate towards a Rinnai natural gas tankless water heater. Program runs 1/1/26 - 12/31/26.
Sources: Internal Revenue Service (IRS), read ; Oklahoma Natural Gas, Rebate Information: Water Heater (2026 PDF), read ; Atlanta Gas Light, Manufacturer Rebates, read .
If you are swapping a tank for a tankless unit in 2026, you can post the job on InstaBids and compare written bids.
Tankless water heater rebate 2026?
From some gas utilities. CenterPoint Energy Indiana’s rebate page says:
“Installation must be completed between January 1, 2026 and December 31, 2026.”
The City of Ellensburg, Washington, shows $800 for Water Heating – Tankless in the Rebate Amount (Maximum) column of its gas appliance form, which says:
“1. Rebates are effective through December 31st, 2026.”
“Tankless Water Heater – Minimum of .90 EF”
Sources: CenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Natural Gas Water Heater, read ; City of Ellensburg (WA) Gas Division, Natural Gas Appliance Rebate Application & Agreement Form (PDF), read .
To line up written bids for a 2026 tankless install, you can post the water heater job on InstaBids.
Tankless water heater tax credit 2025?
Only for work installed by December 31, 2025, and claimed on the IRS credit form; its instructions for gas, propane and oil water heaters say:
“Enter the QMID and amounts you paid for the two most expensive natural gas, propane, or oil water heaters that achieve the highest efficiency tier established by the CEE that is in effect as of the beginning of the calendar year in which the property is placed in service.”
“$600 for natural gas, propane, or oil water heaters.”
“Don't enter more than $600 on line 23d.”
The IRS says you can claim this credit for improvements made through December 31, 2025, so it does not cover work done in 2026.
Sources: Internal Revenue Service (IRS), read ; Internal Revenue Service (IRS), read .
For water heater work you plan now, you can post the job on InstaBids and keep each written bid with your home records.
Tankless water heater rebates 2025?
South Jersey Gas and Elizabethtown Gas each list a tankless rebate of up to $500.00 and take paid invoices dated between January 1 2025 and June 30 2027:
“Efficiency rating: UEF ≥ 0.87”
“Invoice - A paid invoice dated between January 1 2025, and June 30 2027, indicating the type of equipment, installation date, purchase price, model number and serial number.”
Sources: South Jersey Gas rebate portal (South Jersey Industries, read ; Elizabethtown Gas rebate portal (run by CLEAResult), Tankless water heater, read .
Before you send a utility rebate form, you can post the tankless job on InstaBids to collect written bids with model numbers.
Rebate, tax credit, grant or weatherization: how they differ
Utility rebate: paid by a gas company to its own customers, such as the CenterPoint Energy Indiana rebate quoted below.
Manufacturer rebate: Atlanta Gas Light lists Rinnai’s offer, and the customer sends that claim to the maker, as the checklist quotes.
State program: Oregon’s home energy rebate FAQ names on-demand water heaters among HOMES upgrades:
“Upgrades include installing more efficient equipment like a heat pump or on-demand water heater, weatherization measures like insulation or air sealing, smart thermostats, and more.”
“No rebates are currently available.”
Tax credit: the IRS energy efficient home improvement credit ended after December 31, 2025, as quoted above.
Before you apply
- “You will be asked to submit a photo of your receipt and the model tag on your new appliance as apart of the application process.”
- “The application must be submitted along with a copy of an invoice showing: Manufacturer, Model Number, Quantity, and Total Price Showing Full Payment Made.”
- “AHRI Cert - An Air Conditioning, Heating, and Refrigeration Institute (AHRI) certificate, including unit model number, capacity and efficiency performance ratings.”
- “The application must be submitted within 60 calendar days of installation to be eligible for a rebate.”
- “Mail the completed application, natural gas water heater purchase receipt and installation showing a zero balance or paid stamp within 180 days after the date of installation.”
- “This application and agreement must be signed and submitted to the City prior to installation of the new appliance*.”
- “Atlanta Gas Light does not submit manufacturer rebates on behalf of the customer. The customer must submit rebate as instructed on the manufacturer’s rebate submission form.”
- Ask contractors to list the model, efficiency rating and paperwork your program asks for in their written bid.
Cost, options and related pages
What a water heater costs and how tankless compares with a tank are on our cost and comparison pages, linked below.
Sources read:
- Internal Revenue Service (IRS): https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit, read 17 October 2026.
- Internal Revenue Service (IRS), Fact Sheet FS-2025-05, Aug. 21, 2025: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb, read 17 October 2026.
- Internal Revenue Service (IRS): https://www.irs.gov/instructions/i5695, read 21 October 2026.
- Oregon Department of Energy (ODOE): https://www.oregon.gov/energy/energy-oregon/Documents/Federal-Home-Energy-Rebates-FAQ.pdf, read 17 October 2026.
- Oregon Department of Energy (ODOE): https://www.oregon.gov/energy/Incentives/Pages/Home-Energy-Rebates.aspx, read 22 October 2026.
- Southern California Gas Company (SoCalGas), Rebates & Incentives: https://www.socalgas.com/savings/rebates-and-incentives, read 28 October 2026.
- UGI Utilities, Gas Tankless Water Heater Rebate: https://www.ugi.com/rebates-for-home/natural-gas/tankless-water-heater/, read 28 October 2026.
- South Jersey Gas rebate portal (South Jersey Industries: https://sjgsaveenergy-customer.clearesult.com/tankless-water-heater, read 28 October 2026.
- Elizabethtown Gas rebate portal (run by CLEAResult), Tankless water heater: https://etgsaveenergy-customer.clearesult.com/tankless-water-heater-1, read 28 October 2026.
- Minnesota Energy Resources, Water heating rebates (PDF): https://www.minnesotaenergyresources.com/savings/pdf/water-heating-rebates-overview.pdf, read 28 October 2026.
- Atlanta Gas Light, Manufacturer Rebates: https://www.atlantagaslight.com/residential/ways-to-save/rebates/manufacturer-rebates.html, read 28 October 2026.
- CenterPoint Energy Indiana residential rebate portal (run by CLEAResult), Natural Gas Water Heater: https://centerpointenergyindiana-residential-rebate.clearesult.com/natural-gas-water-heater, read 28 October 2026.
- Oklahoma Natural Gas, Rebate Information: Water Heater (2026 PDF): https://www.oklahomanaturalgas.com/media/ONG/EEPLearnMore/Homeowner/ONG-Rebate_App_EE_WaterHeater_Learn_2026.pdf, read 28 October 2026.
- City of Ellensburg (WA) Gas Division, Natural Gas Appliance Rebate Application & Agreement Form (PDF): https://www.ellensburgwa.gov/DocumentCenter/View/5748/Rebate-Application-Form---Appliance-Upgrading, read 28 October 2026.
- Southwest Gas Corporation, Nevada Whole Home Tankless Natural Gas Water Heater - Homeowner/Renter: https://swgas.com/en/rebate/nevada-whole-home-tankless-water-heater-homeowner/renter, read 28 October 2026.