Colorado still helps pay for a new heat pump. What changed is how the money reaches you. Since January 1, 2024, you don’t file anything with your taxes. The credit goes to a contractor registered with the Colorado Energy Office, and that contractor has to take part of it off your bill as a discount. We’re on that list, and we’ve been in business in Northern Colorado since 1934.
Here’s the order things happen in. You pick a registered contractor. We install a qualifying heat pump. Your invoice shows a separate line that reads “State of Colorado Heat Pump Discount” with the amount taken off, so you get it at the time of installation, not months later on a tax return. Then we file for the credit with the Colorado Department of Revenue on Form DR 1322 when we file our own taxes.
That’s it on your end. No form, no worksheet. The state lets a registered contractor keep up to two-thirds of the credit, and at least a third has to come back to you as that invoice discount.
We’re registered for Larimer and Weld counties for air-source heat pumps, ground-source and geothermal systems, and heat pump water heaters.
For equipment installed on or after January 1, 2026, the state sets a floor on your discount:
Those are minimums, and your estimate spells out the discount before you sign. The state has set these amounts for installs through 2028 and plans to lower them again in tax year 2029.
Homeowners, landlords and businesses can all get the discount. The equipment has to clear four bars:
We check all four before we quote, so you’re not counting on a discount that isn’t there.
The state discount and your utility rebates are separate programs, so you can have both. The state discount comes off your invoice. Utility rebates come from whoever sends your bills, whether that’s Xcel Energy, Efficiency Works, Poudre Valley REA or Atmos Energy, and each one has its own rules and deadlines.
See what each one pays on our Fort Collins rebates page.
Thinking about a heat pump this year? We’ve been family-owned and operated for four generations, and we’ll price your job with the state discount and every rebate you qualify for already applied. Get in touch or request an estimate below.
Offer Expires 11/30/26
Offer Expires 11/30/26
Offer Expires 11/30/26
