Colorado Heat Pump Tax Credit: 2023 Installations

A Colorado State tax credit for heat pumps and heat pump water heaters is available for customers who placed equipment in service in 2023.

This guide applies to you if you meet the following criteria:

You are a UniColorado customer who had a heat pump installed in 2023.
Your initial estimate has the “Eligible for Colorado Heat Pump Tax credit” text.

If you meet this criteria, please follow our guide below:

The tax credit is an income tax reduction based on 10% of the price of the equipment, excluding equipment installation.
The 10% tax credit also includes electrical panel upgrades (if needed for the heat pump or heat pump water heater installation) and battery storage.
Renter occupied buildings: “Building owners” includes lessees with lessor-approved installations.

Disclaimer: Please consult a tax professional for advice on your individual tax situation. We are not responsible for any specific tax issues that may arise from our simplified guide.

Homeowners who did not purchase from UniColorado, please contact your installer.

Updated April 17, 2024
By: Editorial Staff

Required Form Instructions

Fill out the form below to recieve a pre-filled DR1322 form from UniColorado.

PART 1 – Eligibility Certification

- Building Owner Information: Fill in the form as needed; joint tax return applications need to fill out the Spouse’s section as well. If the building owner is a business entity, fill out EIN and other necessary information.
- Contractor: Please fill the form below to recieve a pre-filled form with our information. You can also email us at [email protected]
- Line 1 Installation Address and Date: Fill out your address for the property where the heat pump was installed.
- Line 2 Purchase Type, Building Type, and Installation Standard: For purchase type, select the relevant purchase made from one of the following products:
  - Air-Source Heat Pump System: Ductless MiniSplit Installations, outdoor unit only installations.
  - Air-Source heat pump system with electric resistance heating element: Ducted Mitsubishi, Bosch, American Standard/Trane, or Carrier fully electric heat pump systems.
  - Air-Source Heat pump system with dual fuel system: All gas furnace and heat pump (including cold climate) systems that have two fuel types.
- Fill out sections b & c as follows (Residential and Licensed Contractor with Specalized Technicians)
- Line 3 Purchase Information: provide the purchase date, serial numbers of the main components of the heat pump along. Fill out the form below to recieve this information.
- Line 4 Certification of System Requirements and Installation Standards: If your inital estimate includes the text for the Colorado tax credit eligbility criteria, your installation meets all required criteria. If you’re unsure, click the form below to request information from us
- PART 2 – Contractor Certification Sales Tax Exemption – We have taken this exemption at the time of sale. You can skip this section.
- PART 3 – Election Statement for Assignment of Income Tax Credit – No installations for 2023 are eligible for this criteria. You can skip this section.