Energy Tax Credit for a Ductless AC
- Many ductless air conditioners qualify for a 2011 $300 tax credit. Ductless air conditioners consist of an outdoor condensing unit, the indoor unit, refrigerant lines that connect the outdoor condensing unit to the indoor unit and a wall monitor or remote control used to run the system. They receive a tax credit because they do not use ductwork, which causes cold air loss and energy inefficiency. Window units do not qualify for the tax credit.
- Ductless air conditioners must have a satisfactory seasonal energy efficiency ratio (SEER) and a satisfactory energy efficiency ration (EER). These ratings correspond to system efficiency during regular temperatures as well as very hot temperatures of 95F or above. Split system or ductless air conditioners must have a SEER rating greater than or equal to 16 and an EER rating greater than or equal to 13 to qualify. Often you must also replace your furnace in order for your air conditioner to qualify for the tax credit. This is because the blower motor that forces air through the ductless air conditioner is a part of the furnace and must have an advanced main circulating fan. If you do need to purchase a new furnace for your ductless air conditioner to qualify, they must be manufactured by the same company. Finally, you must have installed the unit in your principal residence between January and December 2011.
- Contact your HVAC company or contractor and ask for a signed manufacturer's certification statement for your unit. These may also be found on the manufacturer's website. Although you do not need to submit this with your tax returns, you must keep it with your records in case of audit. After acquiring the certification statement, complete IRS form 5695 and submit it with your return.
- If you are looking to invest in a new air conditioner, check the manufacturer's certification prior to buying the unit. Make sure to ask your HVAC company whether the unit qualifies for a tax credit. If already purchased a ductless system, make sure that it qualifies before claiming the credit. Remember that you can only claim this credit once, and it must be during the year that you purchased the unit.
