Electrification Savings

Colorado Heat Pump Tax Credit

Beginning January 1, 2024, residents of Colorado will be eligible for tax credits to install heat pumps for both space and water heating.

Colorado Heat Pump Tax Credit - 2024 - UniColorado Heating & Cooling
How does it work?
All Coloradans who install an eligible heat pump through a registered contractor will receive a portion of the tax credit as a discount at the time of installation
UniColorado is a registered contractor.
What's eligible
What's the minimum discount?
Air-source heat pump
$499.95
Ground, water, or combined-source Heat pump
$990.90
Heat pump water heater
$165.65
The contractor gives you this discount upfront. The amount shown is the minimum.
What are the rules?
  • Heat pumps for space heating/cooling must cover at least 80% of annual heating needs.
  • Installation must be done by a registered contractor, who provides the tax credit as a discount on installation costs.
  • Contractors handle all paperwork and submit it to the Department of Revenue.
  • The state reimburses contractors through a tax credit when they file taxes.
  • Customers receive the discount directly and don’t need to file any paperwork.
TL;DR

For Colorado homeowners purchasing a new heat pump system, a registered contractor can offer an upfront discount on eligible installations. This discount is actually a tax credit for the contractor. UniColorado is a registered contractor.

What's eligible for the Colorado state heat pump tax credit in 2024?

A variety of heat pump systems, as long as they provide at least 80% of annual heating needs are eligible for the CO heat pump tax credit.

How much is the Colorado state heat pump tax credit?

The total tax credit is $1,500 and 66.6% can be retained by the contractor. Remainder should be offered to the customers as a discount upfront (“minimum discount”).

Who is in charge of the Colorado heat pump tax credit?

The Colorado Energy Office in conjunction with the Dept of Revenue.

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Inflation Reduction Act Tax Incentives

The Federal 25C Tax Credit offers homeowners savings on qualifying heat pumps, energy, and electrical panel upgrades, as well as other energy-efficient improvements. Deduct 30% of the costs, up to $2,000 for heat pumps, $600 for electrical panel upgrades, and various amounts for other measures, from your federal taxes annually.

IncentiveBenefitDescriptionRestriction
25C Tax CreditUp to $3,200A tax credit that reduces tax liabilityMust have tax liability to offset

Go beyond the minimum with UniColorado.

At UniColorado Heating & Cooling, we don’t believe in doing the least. Enjoy discounts of $1,000 – $1,500 using the Colorado State Heat pump tax credit on all eligible systems when you purchase a heat pump system from Colorado’s most experienced heat pump contractor.

Colorado Heat Pump Tax Credit - 2024 - UniColorado Heating & Cooling
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