Tax Credit Changes in Stimulus Package Affect High Efficiency Water Heaters

Consumers can Save Money While Helping the Environment

ASHLAND CITY, Tenn., March 11 /PRNewswire/ -- New tax credit changes in The
American Recovery and Reinvestment Act of 2009 affect A. O. Smith water
heating products.

Under the revised law, the previous tax credit of $300 has been converted to
30 percent of the total installed cost, including labor, with a cap of $1,500
through 2010. For water heaters installed from Jan. 1, 2009 through Feb. 16,
2009, the water heater must have at least a .80 Energy Factor (EF) rating or
90 percent thermal efficiency to qualify for the latest tax credit. Beginning
on Feb., 17, the water heater must have at least a .82 Energy Factor (EF)
rating or 90 percent thermal efficiency to qualify. The credit is subject to
a combined $1500 maximum per homeowner for all improvements eligible under the
new law. The $1500 credit is a cap on the combined amount that can be taken in
tax years 2009 and 2010.

"By encouraging the installation of high efficiency water heaters, the
government is addressing a long-term energy conservation challenge while
consumers begin to save immediately on their utility bills," said David
Chisolm, A. O. Smith water heater brand manager. "A. O. Smith established
itself as an industry leader through a dedication to the development of
technologically advanced products and has a full line of water heaters
eligible for this tax credit."

The A. O. Smith Vertex(TM) product line and the tankless product line both
qualify for the $1,500 tax credit. To qualify, units must be placed into
service between Jan. 1, 2009, and Dec. 31, 2010. For additional information,
visit www.hotwater.com.

About A. O. Smith:
Headquartered in Ashland City, Tenn., A. O. Smith Water Products Company is a
leading manufacturer and marketer of residential and commercial water heaters
and hydronic boilers. A. O. Smith offers contractors an additional competitive
advantage in that the company designs, builds, distributes and field supports
the world's broadest and deepest line of residential and commercial water
heaters, as well as commercial boilers. This single-source concept simplifies
ordering, installation and service and is backed by more than 70 years of
research and innovation.

SOURCE A. O. Smith

Joe Finlay of Gish, Sherwood & Friends for A. O. Smith, +1-615-385-1100,
jfinlay@gish.com