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posted Feb 27, 2026 7:08:49 AM

Mini Split System Installed in 2025

We had a mini split system (electric heat pump and 2 indoor air handlers) installed in 2025. They are in addition to our main HVAC unit.  If they meet the CEE highest efficiency tier, do we qualify for an energy efficient home improvement tax credit?  Is the credit applicable to the cost of the whole system (air handlers in addition to the heat pump)?

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Employee Tax Expert
Feb 27, 2026 7:21:02 AM

It depends.  In order to claim the Energy Efficient Home Improvement Credit, you MUST have a QMID.  If the manufacturer does not provide you with a QMID, then it is possible they are not a participating manufacturer which means their products will not qualify for the Energy Credits. It also must have been installed and ready for use prior to December 31, 2025. 

 

If you do have a QMID, then it is possible you would then be able to claim the credit.

 

The Home Improvement Energy Efficient Credit

Worth up to 30% of costs with a maximum credit $2,000 for

  • Air source heat pumps
  • Heat Pump Water Heaters
  • Biomass Stoves or Boilers
  • Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a is a nonrefundable credit. This means in order to claim the credit you must have a tax liability to offset it.  If you do not have a tax liability equal to the credit the credit will be reduced to match your liability or down to $0. 
  •  use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
  • Doors, windows and insulation must be installed on your primary home.
  • The home must be in the US