Are There Tax Credits for Ductless Mini Splits in Auburn, IN?
As homeowners become more conscious about energy savings, ductless mini splits are gaining popularity for their efficiency, versatility, and ability to provide both heating and cooling. However, the cost of installing these systems can feel like a big investment. The good news? You may qualify for tax credits or incentives that can significantly offset the cost of your new ductless mini split.
T&T Plumbing & Heating, Inc. dives into the details of how HVAC tax credits work and what you need to know to take advantage of them when installing a ductless mini split in your Auburn, IN, home.
Federal Tax Credits for Ductless Mini Splits
The Inflation Reduction Act of 2022 expanded the availability of federal tax credits for energy-efficient home improvements, including ductless mini split installation. Tax credits are financial incentives offered by the government to encourage the adoption of energy-efficient technologies.
When you install a ductless mini split heating and cooling system that meets certain efficiency standards, you may be eligible to claim a portion of the cost as a credit on your federal tax
return for the tax year. Unlike deductions, which reduce your taxable income, tax credits directly lower the amount of taxes you owe—making them particularly valuable.
Here’s what you should know about the current program:
- Credit Amount: Eligible ductless mini split heat pump systems can qualify for a tax credit of up to 30% of the system’s cost, capped at $2,000 annually. This includes both the cost of the unit and installation.
- Eligibility Criteria: The system must meet ENERGY STAR certification standards for energy efficiency. The installation must occur in an existing home, not a new construction project.
- Claiming the Credit: To claim the credit, you’ll need to complete IRS Form 5695 when filing your federal taxes. Keep all receipts and manufacturer certification statements to support your claim.
Indiana-Specific Energy Efficiency Incentives
In addition to federal tax credits, Indiana residents can explore local incentives for energy-efficient home improvements. While Indiana does not currently offer statewide tax credits for ductless mini splits, utility companies and local programs in the Auburn area may provide rebates or discounts.
Steps to Maximize Your Savings
If you’re considering a ductless mini split and want to maximize your savings through tax credits or other incentives, follow these steps:
Research Qualified Systems
Look for units with ENERGY STAR certification, as these are typically the ones eligible for tax credits. Verify that the models you are considering qualify as eligible improvements before you have a new system installed.
Choose a Trusted Installer
Work with a licensed and experienced HVAC contractor like T&T Plumbing & Heating, Inc. to ensure proper installation. A professional installer can also guide you through available rebates and incentives.
Save Your Documentation
Keep receipts, invoices, and any certification documents provided by the manufacturer or installer. You will need these when filing for tax credits or rebates.
Explore Other Energy-Efficient Home Improvements
Consider other energy-efficient home improvements that may qualify for tax credits. Having a home energy audit performed as well as installing items such as energy-efficient windows, exterior doors, or insulation can increase your savings up to the maximum annual credit of $3,200 while further reducing your energy consumption.
How T&T Plumbing & Heating, Inc. Can Help
At T&T Plumbing & Heating, Inc., we understand that investing in a ductless mini split is a big decision, and we’re here to help every step of the way. Our team can:
- Help you select a qualifying system that meets your home’s needs.
- Provide expert installation to ensure your system operates at peak efficiency.
- Guide you through the process of applying for tax credits, rebates, and other incentives.
- Offer maintenance and repair services to keep your system running smoothly for years to come.
Install a New Mini Split System in Your Auburn, IN Home
Ductless mini splits are not only a practical solution for heating and cooling your home—they’re also an opportunity to take advantage of valuable tax credits and rebates. By choosing an energy-efficient system and working with a trusted provider like T&T Plumbing & Heating, Inc., you can enjoy greater comfort, lower energy bills, and the satisfaction of making an eco-friendly choice.
Ready to learn more? Contact T&T Plumbing & Heating, Inc. today to explore your options for ductless mini splits and start saving!
