How does the tax credit work for ductless mini-splits?

Are you considering upgrading your home’s heating and cooling system to a more energy-efficient option? If so, you may be eligible for valuable tax incentives through the 25C Tax Credit. In this blog, we’ll explain how the 25C Tax Credit works and how you can take advantage of it when purchasing a ductless HVAC system from Ductless Direct.

What is the 25C Tax Credit?

The 25C Tax Credit is a federal tax credit that encourages homeowners to invest in energy-efficient home improvements, such as HVAC systems, insulation, windows, and doors. Under the 25C Tax Credit, homeowners can claim a credit of up to 30% of the cost of qualifying energy-efficient improvements, up to a maximum of $2000.

Qualifying Criteria

To qualify for the 25C Tax Credit, your ductless HVAC system must meet certain energy efficiency standards set by the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA). For ductless mini-split systems, the minimum requirements typically include:

For qualifying equipment, you can search here. https://www.energystar.gov/about/federal-tax-credits/air-source-heat-pumps or contact Ductless Direct

How to Claim the Credit

To claim the 25C Tax Credit, you’ll need to file IRS Form 5695 (Residential Energy Credits) with your federal income tax return. Be sure to keep copies of all receipts and manufacturer certifications for your energy-efficient home improvements, including your ductless HVAC system, as you may be required to provide documentation to support your claim.

Benefits of Ductless HVAC Systems

In addition to the financial incentives offered through the 25C Tax Credit, ductless HVAC systems offer numerous benefits for homeowners, including:

Energy Efficiency: Ductless mini-split systems are highly energy-efficient, helping to lower your utility bills and reduce your carbon footprint.

Zoned Comfort: With customizable zoning options, ductless systems allow you to heat or cool specific areas of your home independently, maximizing comfort and energy savings.

Easy Installation: Ductless systems are easy to install and require minimal disruption to your home, making them a convenient and cost-effective heating and cooling solution.

Quiet Operation: Ductless systems operate quietly, providing consistent comfort without the noise associated with traditional HVAC systems.

Conclusion

The 25C Tax Credit offers homeowners a valuable incentive to invest in energy-efficient home improvements, including ductless HVAC systems. By choosing a qualifying ductless system from Ductless Direct, you can enjoy enhanced comfort, energy savings, and potential tax benefits for years to come.

Ready to upgrade to a ductless HVAC system and take advantage of the 25C Tax Credit? Contact us today to explore our selection of energy-efficient ductless systems and schedule a consultation with one of our experts. With Ductless Direct, achieving comfort and savings has never been easier.