Tax Credits

Take a look at some of the benefits you can reap as a ductless heat pump consumer.

Federal Tax Credits:

2023 Tax Credit Information

Federal tax credits for 2023 include up to 30% of install costs up to $2000 on Energy Efficient Mitsubishi Systems

• A 10-year extension and expansion of existing 10% tax credit to 30%.
• Begins with tax year 2023 (January 1, 2023), claim credit on your 2023 taxes.
• Tax credit increases up to $2,000 max when adding a qualified heat pump installation to the project.*
  • The heat pump system must meet or exceed the highest performance tier set by the Consortium for Energy Efficiency (CEE).**
    CLICK HERE FOR MITSUBISHI QUALIFYING HEAT PUMPS
• Households may claim annually through 2032.
• You can receive a tax credit and a rebate for the same project.

Click link for more information:
https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

2023 Residential Federal Tax Credit Form – Downloadable and Printable (pdf)

*Federal and State tax credits are subject to interpretation. Customer should consult with an accountant or tax professional.

2022 Tax Credit Information

Information updated 12/30/2022

The Non-Business Energy Property Tax Credits outlined below apply retroactively through 12/31/2022. Updates will be applied for 2023 and remain effective through 12/31/2032.

Tax Credit:  10% of cost up to $500 or a specific amount from $50-$300.
Expires:  December 31, 2022
Details:  Must be placed in service in an existing home which is your principal residence by December 31, 2022.  New construction and rentals do not apply

2021 Residential Federal Tax Credit Form – Downloadable and Printable (pdf)

2020 Residential Tax Credit Instructions – Downloadable and Printable (pdf)

1040-X Amendment Form – Download and Printable (pdf)

Montana Energy Conservation Installation Credit

The Department of Revenue encourages citizens to weatherize their homes and take advantage of the Energy Conservation Installation Credit when individual income tax returns are filed.

Montana State Tax Credits:

2021 Montana Tax Credit Form ENRG-C – Downloadable and Printable (pdf)
2020 Montana Tax Credit Form ENRG-C – Downloadable and Printable (pdf)

The credit is applied against a taxpayer’s income tax liability. Montana resident individuals can claim the credit for energy conservation investments made to a home or other building. The credit is equal to 25% of expenses, up to a maximum credit of $500. Two or more people may each qualify for the credit, as long as the building in which the investment is made is owned by all of the people claiming the credit. For example, a married couple who jointly own their home may each claim a credit up to $500 each or $1,000 for the couple.

IMPORTANT NOTICE: This credit has been repealed for Tax Year 2022. Tax Year 2021 is the last year this credit is available. Available credits for upcoming 2023 yet to be determined.