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Take Advantage of Tax Credits and Rebates When Upgrading to a Ductless System

Tuesday, September 10, 2013

As part of the push toward adopting clean or sustainable energy solutions, the federal government offers homeowners significant tax credits and rebates to assist with the purchase of home cooling and heating equipment. Among the many reasons to go ductless, consider the possibility of capitalizing on these tax savings when installing a new ductless air conditioner in your home.

Operating a ductless system offers notable energy efficiency, so these heat pumps and air conditioners qualify for federal 25C tax credits under the American Taxpayer Relief Act of 2012. Key notes about these incentives include:

  • Air conditioners with a seasonal energy efficiency ratio (SEER) of 16 and above and an energy efficiency ratio (EER) of 13 and above can garner credits of up to 10 percent of the installation and purchasing costs.
  • Heat pumps with ratings of at least SEER 15, EER of at least 12.5, and heating seasonal performance factor (HSPF) of at least 8.5 can also earn tax credits of 10 percent of costs, including installation.
  • Purchase and installation of ductless systems must be completed by December 31, 2013, for a primary residence in order to qualify. The credit can be taken up to a $500 total, with restrictions if you have already claimed energy credits since 2005.

As a tax credit, these 25C savings are applied directly to the taxes you owe, lowering how much you have to pay, as opposed to tax deductions, which lower your effective taxable income.

When shopping for a new ductless system, be sure to ask your contractor about local incentives that may also apply. Some cities and counties offer additional credits or rebates for homes and businesses installing energy-efficient equipment. Devices certified by the EPA’s Energy Star Program may also be eligible for special incentives.

For help finding a ductless system that saves you money on tax credits as well as through ongoing energy efficiency, contact us at We can help Virginians find a Mitsubishi Electric Contractor for home heating and cooling needs.

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