Beginning January 1, 2024, residents of Colorado will be eligible for tax credits to install heat pumps for both space and water heating.
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.
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.
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”).
The Colorado Energy Office in conjunction with the Dept of Revenue.
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.
Incentive | Benefit | Description | Restriction |
---|---|---|---|
25C Tax Credit | Up to $3,200 | A tax credit that reduces tax liability | Must have tax liability to offset |
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.
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