Rebates & Tax Credits.
Save even more with federal tax credits on qualifying ductless mini-split systems.
Up to $2,000 Tax Credit
Claim 30% of equipment + installation costs on qualifying heat pumps and ductless mini-splits through 2032.
Energy Efficient Home Improvement Credit
Formerly known as Section 25C
Credit Details
- ✓30% tax credit on the cost of equipment and installation for qualifying improvements made between Jan. 1, 2023 and Dec. 31, 2032
- ✓Annual credit cap of $2,000 per year for heat pumps and qualifying ductless mini-split systems
- ✓Must be installed in your primary residence (existing home) in the U.S. — not new construction
- ✓Equipment must meet certain efficiency criteria (meet or exceed the "highest efficiency tier" established by the Consortium for Energy Efficiency)
- ✓File IRS Form 5695 to claim the credit
Important Note
The credit is non-refundable, meaning it reduces your tax liability but doesn't result in a refund beyond your tax owed.
What It Is
This is a tax credit, not an instant rebate. It reduces how much federal income tax you owe when you file your return for that year.
Example
You owe $3,000 in taxes, claim a $2,000 heat-pump credit → you now owe $1,000.
Note: It's non-refundable — if you owe less than $2,000, you can't get a cash refund for the remainder.
🪜 Step-by-Step: How to Get It
Buy and Install a Qualifying Unit
- ✓Must be ENERGY STAR certified and meet the CEE "highest efficiency tier" for the year you install it
- ✓Must be installed in your primary residence in the U.S. (not new construction)
- ✓Must be placed in service (installed and operating) before Dec 31, 2032
Keep Your Paperwork
You'll need the following documentation:
- •The sales invoice showing the total cost (equipment + installation)
- •The AHRI certificate (proves model efficiency ratings)
- •Documentation confirming it meets the required efficiency tier
File Your Taxes with Form 5695
At tax time (early the next year), download IRS Form 5695 and include it with your federal return (Form 1040).
You'll enter:
- •The total cost of your heat-pump project
- •Calculate 30% of that amount
- •Cap it at $2,000
Submit with Your Return
The credit applies in the year the system was installed and operational. So if you install in 2025, you'll claim it on your 2025 taxes (filed in 2026).
Do Zone Systems Qualify?
Zone ductless mini-split heat pump systems are designed to meet or exceed the highest efficiency tiers established by the Consortium for Energy Efficiency (CEE), making them eligible for the Energy Efficient Home Improvement Credit when installed as a heat pump.
Efficiency Requirements
To qualify for the tax credit, heat pump systems must meet the CEE's highest efficiency tier criteria at the time of installation. Zone systems feature:
- •SEER ratings up to 24.5 (cooling efficiency)
- •HSPF ratings up to 12.5 (heating efficiency)
- •Advanced inverter technology for optimal performance
Important: We recommend consulting with a tax professional to confirm eligibility for your specific installation and tax situation. Zone does not provide tax advice.
Resources & Links
Questions About Tax Credits?
Our team can help you understand which Zone systems qualify and provide documentation for your tax filing. For specific tax advice, please consult a tax professional.