Do Mini Splits Qualify for Tax Credit?

When tax time comes around, you’re always looking to deduct whatever you can. You try to apply these tax credits in your personal and professional life alike. As you’re reviewing all your tax information for the prior year, it occurs to you that you got a ductless mini split system installed in your home last year.

Can the purchase of the mini split be used as a tax credit? Possibly! Let’s take a look at the two areas in which you may be eligible for a tax credit as of 2021.

Federal Energy Efficient Tax Credit

In late 2020, the Further Consolidated Appropriations Act, 2021 was passed and signed by the government. Under this act, if you bought or will buy a ductless mini split system before December 31st, 2021 and you’re a nonbusiness, then you could be eligible for a tax credit.

If your ductless mini split system was installed and running after December 31st, 2022 but before January 1st, 2024, you could get 22 percent off as a tax credit. If your system was installed and running after December 31st, 2019 but before January 1st, 2023, the tax credit is 26 percent.

For those homeowners with a ductless mini split system that was in service before or on December 31st 2019, you could get a 30 percent credit as well.

Federal HVAC Tax Credit

Another possible opportunity for a deduction is the Federal HVAC Tax Credit. This too was passed governmentally in late 2020. If a boiler or furnace qualifies, then you can receive a credit of up to $150.

For any ductless mini split system, packaged unit, heat pump, or central air conditioner that applies, the max credit is $300. You can also apply for credit between $50 and $300 for a specific amount or 10 percent of your mini split price with a max credit of $500.

Other Benefits of a Ductless Mini Split System

Tax credits are but one of the many perks of having a ductless mini split system in your home. Here are some other advantages that should interest you.

  • Monthly energy bill savings: Why stop with a tax credit when you can save money consistently month after month on your utility bills? Ductless mini splits use resources smartly so you spend less.
  • Energy efficiency: You care about our great planet, as we only have one mother earth. A mini split system is far eco-friendlier than that 10-year-old furnace or your central air conditioning.
  • Quiet operation: Clunky heater or rattling air conditioner? Not with a ductless mini split! These units are super quiet so you can sleep with one in your bedroom or enjoy time in the family room without distraction.
  • Customizable temps: Do you like it cooler upstairs than downstairs? A ductless mini split system comes with thermostats per each indoor air-handling unit so you can set the temperature. Several zones can have different temperatures.

If you want to order a ductless mini split system to begin enjoying tax credits in the future, give us a call at PowerSave AC today!