Federal Rebates for Mini Splits

You want to pull the trigger on a ductless mini split system, but you haven’t quite yet. Maybe it’s that you’re so used to your old air conditioner or heater, or you don’t know how well a mini split system will work for you (the answer? Very well!).

Here’s something that might inspire you to take the plunge: federal rebates. The Non-Business Energy Property Tax Credit, which is in tax code Section 25 C, has been passed by Congress yet again for 2021.

Thanks to the credit, if you’ve purchased a ductless mini split system within the last year, you could be eligible for a rebate.

In 2020, the rebate was good for up to $500. Even better was that the Non-Business Energy Property Tax Credit was applied retroactively that year. If you had bought and installed a ductless mini split system between December 31st, 2017 and December 31st, 2020, you were potentially eligible.

In 2021, the Non-Business Energy Property Tax Credit expanded its rebate offer, which is now eligible through December 31st, 2021. The same amount of tax credit is still applicable, which is up to $500.

There are criteria your property must meet before you try to collect your rebate. The principal residence or home must already exist. If you had a home built within the last several years that included a ductless mini split system or other eco-friendly units, you’re not a candidate for the rebate.

Also, it appears that the Non-Business Energy Property Tax Credit is for homeowners only, not commercial building owners or managers.

Your mini split must have a seasonal energy efficiency ratio or SEER of up to 16 to apply. Its energy efficiency ratio or EER must be 13.

Another catch is this: you can only apply for a rebate through the Non-Business Energy Property Tax Credit once. Thus, if you’ve earned a rebate since the program started in 2005 through any year prior to 2021, you cannot apply again.  

If you need further incentivizing to upgrade your HVAC to a ductless mini split system, here’s some. Ductless mini splits are far more energy-efficient than traditional HVAC. Keeping your home warm and cool will be less detrimental to our planet. On top of that, you can save on your monthly energy bills.

The indoor air-handling units are small and, while unsightly to some, can be hidden or obscured in a room so they’re less visible. You can attach several air-handling units to one outdoor compressor and then customize the temperature of each one.

Your ductless mini split system is also an all-in-one heating and cooling solution. You can get rid of not only your ancient air conditioner but your busted furnace or heater as well.

If you want to begin exploring your ductless mini split options, give us a call at PowerSave AC. Our selection of mini splits can’t be beat.

You can shop for five-zone mini splits that can heat or cool your whole home so that no matter the time of year, you’re comfortable. Our single-zone heating and cooling solutions are also great!