State Programs
Colorado Heat Pump
Incentives, Stacked
Colorado wants homes on heat pumps and pays for it from several directions at once: a state tax credit passed through by the installer, utility rebates that depend on who bills you, and the new Denver-metro Power Ahead Colorado rebate. Qualifying installs can claim up to $3,500 in combined rebates. The order you do things in changes the total, and that is the part we manage.
Eligibility
The layers
Which of these apply depends on your address and your utility. We confirm each one at quote time.
Rates and rules on this page last verified September 2026. We re-confirm at quote time.
Colorado state heat pump tax credit
A state income tax credit for qualifying heat pump installations, claimed by the installing contractor and passed to you as an upfront discount.
Utility rebates
Xcel Energy, Efficiency Works (Fort Collins, Loveland, Longmont, Estes Park), Atmos, and the rural co-ops each run their own.
Power Ahead Colorado
$1,500 off a cold-climate heat pump across the Denver metro, for projects completed June 29, 2026 or later.
Envelope first
Insulation and air sealing before the heat pump earns Xcel’s $600 bonus and Efficiency Works’ $2,000 bundling bonus, and lets the heat pump be sized smaller.
How We Handle It
What PowerHouse does with this program
Confirm every layer
State, utility, and metro program, checked against your address.
Sequence for the bonuses
Envelope first, then the heat pump, inside the bonus windows.
Size it right
A tighter house needs a smaller unit. That is money twice.
File all of it
Pass-through credit, rebate applications, and documentation, handled.
FAQs
Colorado Heat Pump Incentives questions, answered
Is there still a federal heat pump tax credit?
Not for installs completed in 2026 or later. The federal Energy Efficient Home Improvement Credit ended after December 31, 2025. Work completed in 2025 is still claimable on your 2025 return.
How does the Colorado state credit work?
It is claimed by the installing contractor, who passes it to you as a discount on the install. You do not file for it yourself.
Should I insulate before I install a heat pump?
Almost always. It earns bonuses from Xcel and Efficiency Works, and a tighter house needs a smaller, cheaper heat pump that runs less.
Get Started Today
Find out what Colorado Heat Pump Incentives is worth for your home
One free quote confirms which programs your address qualifies for, what they pay right now, and what your project actually costs after we have filed every one of them.
970-825-0950