State programs provide tax credits to multi-family dwelling owners who upgrade qualifying units from electric baseboard or wall heating units to a high efficiency ductless heat pump system
Bend Heating & Sheet Metal, which has served Central Oregon since 1953, has now completed test marketing of the State of Oregon Residential Energy Tax Credits (RETC) and Small Premium Projects (SPP) tax credits program supported through the Oregon Department of Energy (ODOE).
The program is combined with utility cash incentives from The Energy Trust of Oregon (ETO) for multi-family dwelling owners who make the investment to more energy efficient ductless HVAC systems.
The RETC provides for $1,200-1,300 tax credits per system per unit. The SPP provides for 35 percent of the equipment costs up to $7,000 total. These two programs run through the end of 2017 by Oregon Legislature rule. The ETO cash incentive ranges from $500 to $800 per unit.
These programs provide tax credits to multi-family dwelling owners who upgrade qualifying units from electric baseboard or wall heating units to a high efficiency ductless heat pump system. As much as 25-30 percent of all housing stock in Oregon fits this category of multi-family dwellings that provide housing mostly to renters. Only Certified Master Installers can perform the ductless heat pump installation in order to receive either of the state tax credit incentives.
According to Randall Marchington, HVAC mechanical estimator for Bend Heating, “After discovering this program with the Oregon Department of Energy and confirming the requirements, then combining it with the utility companies cash incentives, we have performed ductless heat pump installations in a local six-plex, four-plex, ten-plex, twelve-plex and some light commercial buildings in Bend and a coffee shop in Redmond for test markets and all have been home run success stories, reducing utility bills by as much as 50 percent for the occupants and providing a return on investment for the property owners in as little as 14 months.”
One local multi-family dwelling owner, Conan Doherty, made an investment of $28,000 into his rental units on NW Hill Street in Bend with similar results. “I recently had a ductless heat pump system installed in a six-plex we own and after the installation by Bend Heating we will receive $7,000 in Oregon Tax Credits and I got a check for $3,600 directly from Energy Trust of Oregon. If you look at your rental properties as long term investments you will be doing a great service for your tenants and yourself by putting these systems in. In addition to the lower heating bills in the winter our tenants also have air conditioning now in the summer. When you add up the numbers a ductless heat pump system is the way to go and Bend Heating did a great job for us!”
Besides the tax benefits, homeowners upgrading their HVAC systems receive other benefits as well. A ductless heat pump can reduce an owner’s or tenant’s electric heating bills by as much as 50 percent. The system also provides air conditioning and air filtration for better environmental control. According to Marchington the system can pay the property owner back in as little as 14 months.
The program has not been well publicized by the State to date and currently Bend Heating is the only company in Central Oregon to participate in making these programs available.
For more information contact Randall Marchington from Bend Heating & Sheet Metal at 541-948-7193 or randall@bendheating.com.
Rob Del Mar
Central Oregon Field Energy Analyst
Oregon Department of Energy
503-302-7027
Robert.delmar@state.or.us
Daniel Wilkinson
Business Development/ Field Engineer
Existing Multi Family Program
503-729-0562
energytrust.org
