Both the Federal government and many states now offer substantial incentives and benefits for homeowners that install ductless mini split heat pump systems.
NEMSI will work with you to ensure that your ductless mini split heat pump system meets the criteria necessary to qualify for the maximum possible rebates and incentives!
Federal Rebates and Incentives
- For all qualifying installations after January 1, 2023, a federal tax credit of 30% of installation cost, up to $2,000, is available. This is not a deduction that offsets taxable income – it is a credit that can reduce your tax bill dollar for dollar.
- The 2022 Federal Inflation Reduction Act also contains the High-Efficiency Electric Home Rebate (HEEHRA) program. This program provides rebates of up to $8,000 of installation cost for a heat pump for space heating or cooling. The following income limits apply:
- If household income is 80% below the relevant area’s median income, the homeowner is eligible to receive the maximum rebate: 100% up to $8,000.
- If household income is 81-150% of the relevant area’s median income, the homeowner is eligible to receive up to 50% of the heat pump’s installed cost.
- The credit is not available to consumers who earn more than 150% of the media for their area. Median income is determined by reference to the Fannie Mae Area Median Income tool, available here: https://ami-lookup-tool.fanniemae.com/amilookuptool/
- **HEEHRA rebates are administered by state energy offices, which are currently in the process of creating specific guidelines. These funds are expected to be available in the second half of 2023. NEMSI can partner with you to help ensure that your installation qualifies!
State Rebates and Incentives
- New Hampshire currently offers rebates for installation of qualified heat pumps.
- The rebate is calculated by dividing rated cooling capacity measured in BTUs by 12,000, multiplied by $250. (For example: 40,000 BTUs cooling/12,000 = 3.33 tons x $250/ton = rebate of $832.50)
- The program is administered via the New Hampshire utilities and thus operates slightly differently based on which utility services the customer. For up-to-date details on New Hampshire’s rebate program, visit: https://nhsaves.com/learn/rebate/electric-heating-cooling-equipment/
- Maine offers rebates of up to $1,200 for installation of residential ductless heat pumps through Efficiency Maine. For up-to-date details on Maine’s program, visit https://www.efficiencymaine.com/at-home/ductless-heat-pumps/
- Massachusetts offers rebates of up to $10,000 for installation of air source (mini split) heat pumps as a primary heat source. These systems double as cooling systems in the summer. For up-to-date details on Massachusetts’ program, visit: https://www.masssave.com/residential/rebates-and-incentives/air-source-heat-pumps