State and Federal Incentives

The Federal government and the State of Colorado have been rolling out lots of great new rebates and incentives to help residents across the country make their homes more efficient, comfortable, and climate-ready. Not sure where to begin? We can help with that!

Federal Tax Credits

The Inflation Reduction Act of 2022 empowers Americans to make homes more energy-efficient by providing federal tax credits for certain energy efficiency and renewable energy projects.

Through 2032, federal income tax credits are available to homeowners, that will allow up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage.

Visit the EnergyStar website to learn more about these available tax credits.

State Incentives

The State of Colorado offers various financial incentives to help Colorado residents take part in the transition to clean energy.

Heat Pump Tax Credits – Upfront Discount

All Colorado residents who install an eligible heat pump through a registered contractor may receive a portion of the tax credit (at least 33.33%) as a discount at the time of installation.

Contractors must be on the list of registered contractors and pass along the discount to the customer for each tax credit they claim.

Inflation Reduction Act – Home Energy Rebates

The Home Energy Rebates offer opportunities and financial incentives for eligible low- and moderate-income Coloradans to install electric appliances and make cost-saving home energy upgrades. These rebates are available thanks to the landmark Inflation Reduction Act.

Colorado will offer two income-qualified Home Energy Rebate Programs:

The Home Electrification and Appliance Rebate program (HEAR) is for homes and multifamily buildings that are upgrading electrical equipment and appliances. The initial phase of the HEAR program launched through the Colorado Weatherization Assistance Program in Fall 2024. Direct-to-consumer rebates to receive a discount on the upfront cost of qualified home energy upgrades will be available for eligible low- and moderate-income Coloradans through approved contractors starting sometime in 2025. More details about household and equipment eligibility, rebate amounts, and how to apply will be available when the direct-to-consumer rebates are launched.

The Home Efficiency Rebate program (HOMES) is designed for comprehensive energy efficiency upgrades in large multifamily buildings (50,000 square feet or larger) and for mobile/manufactured homes.

For a list of all available funding or financing opportunities through Colorado, including transportation opportunities, visit the Colorado Energy Office’s webpage.