Duct Free Mini Splits

Ductless, Mini-Split Heat Pumps         

The Oregon Residential Energy Tax Credit Program provides a tax credit for installation of ductless

heat pumps, sometimes called “mini-split” heat pumps, certified energy efficient by the Oregon

Department of Energy. The system(s) must be new and located in an Oregon dwelling that is your

primary or secondary residence. The eligibility requirements for Premium Efficiency ductless heat pumps are found below.

Ductless, mini-split-system heat pumps (mini splits) make good retrofit add-ons to houses with "non-ducted" heating systems, such as hydronic (hot water heat), radiant panels, and space heaters (wood, kerosene, propane). They can also be a good choice for room additions, where extending or installing distribution ductwork is not feasible.

Like standard air-source heat pumps, mini splits have two main components: an outdoor compressor/condenser, and an indoor air-handling unit. A conduit, which houses the power cable, refrigerant tubing, suction tubing, and a condensate drain, links the outdoor and indoor units.

Advantages                                                                                                  

The main advantages of mini splits are their small size and flexibility for zoning or heating and cooling individual rooms. Many models can have as many as four indoor air handling units (for four zones or rooms) connected to one outdoor unit. The number depends on how much heating or cooling is required for the building or each zone (which in turn is affected by how well the building is insulated). Since each of the zones will have its own thermostat, you only need to condition that place when someone is there. This will save energy and money.

Ductless mini-split systems are also often easier to install than other types of space conditioning systems. For example, the hook-up between the outdoor and indoor units generally requires only a three-inch hole through a wall for the conduit. Also, most manufacturers of this type of system can provide a variety of lengths of connecting conduits. If necessary, you can locate the outdoor unit as far away as 50 feet from the indoor evaporator. This makes it possible to cool rooms on the front side of a building house with the compressor in a more advantageous or inconspicuous place on the outside of the building.

Since mini splits have no ducts, they avoid the energy losses associated with ductwork of central forced air systems. Duct losses can account for more than 30% of energy consumption for space conditioning, especially if the ducts are in an unconditioned space such as an attic.

In comparison to other add-on systems, mini splits offer more flexibility in interior design options. The indoor air handlers can be suspended from a ceiling, mounted flush into a drop ceiling, or hung on a wall. Floor-standing models are also available. Most indoor units have profiles of about seven inches deep and usually come with sleek, high tech-looking jackets. Many also offer a remote control to make it easier to turn the system on and off when it's positioned high on a wall or suspended from a ceiling.

Split-systems can also help to keep your home safer since there is only a small hole in the wall. Through-the-wall and window mounted room air-conditioners can provide an easy entrance for intruders.

Eligibility requirements for Premium Efficiency ductless heat pumps:

• Variable speed compressor (“inverter technology”)

•

No built-in resistance heat

•

Listing in the Air Conditioning and Refrigeration Institute (ARI) database

•

Installed by a technician who has received factory-sponsored training within the past five

years. The technician must follow manufacturer’s start-up and commissioning procedures and

provide a copy of the start-up procedures from the manufacturer’s installation manual. This

copy must be dated and signed by the technician and included with this application.

A list of eligible ductless heat pumps by manufacturer and model are available on our Web site or call

us at the number below. The list is updated as new models are released and added to the

ARIdatabase.

To qualify for a tax credit, you must have an Oregon income tax liability and the system must be

installed your principal or vacation home located in Oregon. If you are an Oregon resident and do not

have an Oregon income tax liability, you may choose to transfer your tax credit to an individual or

business with an Oregon income tax liability using the “pass through option”. You are responsible for

finding the pass-through partner for this transfer. See section 4 of the

Application and Verification Form for details about this option.

Don't wait to apply for the tax credit as processing may take several weeks. You will receive

certification that you will need when you file your tax return. You can apply for and claim the credit

for the tax year you purchase the appliance as long as you place it in service by April 1 of the

following year. Take the following steps to receive your tax credit:

1. Verify that the ductless heat pump system you are buying is eligible for a tax credit

and that the technician installing your system has received factory-sponsored training within the past 5

years

2. Be sure the installing technician has completed Sections 2 and 3 of the

Application and Verification form. 

The technician must follow manufacturer’s start-up and commissioning procedures and provide a copy of the start-up procedures from the manufacturer’s installation

manual. This copy must be dated and signed by the technician and included with this application. Be sure your paid receipt clearly shows the date,

name of the installing company, the make and model numbers of the system(s), your equipment cost and the total amount paid.

3. Submit a completed

Application and Verification Form for Tax Credit Certification -Premium Efficiency Ductless Heat Pumps

Sign it and mail it with a copy of your receipt to the Oregon Department of Energy. If you qualify for the tax credit, the Oregon Department of Energy

will approve your application and send you a certification specifying the qualifying tax credit amount.

4. Claim the tax credit on your state income tax form.

Keep your certification, a copy of your application, and proof of payment with your tax records. (Do not attach them to your tax return.)

If your return is audited, the Oregon Department of Revenue will request copies of the

information from you. You may carry forward any unused credit for up to five years.

If you have any questions, please call the Oregon Department of Energy toll-free: 1-800-221-8035.

(In Salem, call 503-378-4040.) Or consult the Oregon Department of Energy Web site

www.oregon.gov/energy

If you have questions concerning claiming the credit on your Oregon tax return, contact the Oregon

Department of Revenue at 1-800-356-4222 or 503-378-4988.

Web site:

www.oregon.gov/energy