How to Maximize Tax Benefits When Installing a Mini Split System

Who doesn’t love getting money back at tax time? You can spend your tax refund on that home improvement project you’ve put off or even something nice for yourself (you deserve to splurge from time to time, after all!).

You’re planning to install a ductless mini split system in your home soon, and you’d like to plan the work in such a way as to maximize your tax benefits. How do you do that?

Let’s explore!

Know Your Options

To recoup the costs of your mini split, the applicable HVAC tax credit you should look into is the Federal HVAC Tax Credit. It’s also sometimes referred to as the Non-Business Energy Property Tax.

Whatever you prefer to call it, this tax credit went into effect in 2020 alongside the Federal Energy Efficient Tax Credits.

These tax credits can shave dollars off your mini split installation if the installation qualifies.

The Federal HVAC Tax Credit includes two parts or components, Residential Energy Property Costs, and Qualified Energy-Efficient Improvements.

Residential Energy Property Costs encompass some water systems, oil mechanics, propane, natural gas, and HVAC systems while the Qualified Energy-Efficient Improvements are skylights, windows, exteriors, some roof materials, and insulation.

While you can use both tax credits, you can only get 10 percent from the Qualified Energy-Efficient Improvements and 100 percent from the Residential Energy Property Costs.

Be Aware of How Much You Can Save

When it comes to tax refunds, no one likes surprises. You want to know exactly how much money you’ll rake in.

With the Federal HVAC Tax Credit, you can earn back up to $500 on your ductless mini split system. Perhaps that number doesn’t have as many zeroes tacked to the end as you wish it did, but it’s still better to save some money than none at all.

Buy a High-Performance Mini Split

To ensure you get the full refund for your ductless mini split, while you’re still shopping around, triple-check that your mini split meets the necessary specifications.

The mini split must have a Heating Seasonal Performance Factor or HSPF of at least 8, an Energy Efficiency Ratio or EER of at least 12, and a Seasonal Energy Efficiency Ratio or SEER of at least 15.

You can easily find this information when browsing mini splits online or in stores. We recommend jotting down those numbers or adding them to your smartphone’s notes so you have the information handy when you shop.

Ready to Buy Your Ductless Mini Split?

Now that you know how to maximize tax benefits when installing a mini split system, you’re readier than ever to take the plunge and upgrade your heating and cooling.

PowerSave AC is your premier choice for ductless mini split systems. Whether you’re interested in a smaller single-zone system or a multi-zone system up to five zones, you can find a fantastic mini split through us.

You can even narrow down mini splits by SEER on our website to ensure you’re within the parameters of the Federal HVAC Tax Credit. Give us a call or visit our site today!