Heat Pump Rebates 2025: Federal, State & Local Incentives in Colorado

Upgrading to an energy-efficient heat pump is not only beneficial for the environment but also for your wallet. In 2025, homeowners have access to a variety of rebates and tax credits that can significantly reduce the cost of installation. Here’s how you can take advantage of these opportunities.

Federal Tax Credits

Under the Energy Efficient Home Improvement Credit, homeowners can claim a tax credit for installing qualifying heat pumps. This credit covers 30% of the cost, up to a maximum of $2,000 per year. Forbes IRS ENERGY STAR

To qualify:

The heat pump must meet or exceed the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) at the time of installation.
Installation must occur in the taxpayer’s principal residence.
Costs can include both the equipment and labor. ENERGY STAR IRS Carrier Associated Press ENERGY STAR HVAC Science

State and Local Rebates

In addition to federal incentives, various state and local programs offer rebates:

Denver Climate Action Rebate: Residents may be eligible for rebates when replacing old heating systems with high-efficiency heat pumps.
Xcel Energy Rebates: Customers of Xcel Energy can access rebates for installing qualifying heat pump systems.

Manufacturer Rebates

Bryant offers rebates on select heat pump models. These promotions vary throughout the year, so it’s advisable to check their official website or consult with a certified Bryant dealer for current offers. YouTube Consumer Reports Energy.gov

High-Efficiency Electric Home Rebate Program

This program provides rebates up to $8,000 for the installation of energy-efficient systems, including heat pumps, in qualifying homes. Eligibility is based on household income:Time Carrier Associated Press HVAC Science Time Consumer Reports

Households earning less than 80% of the area median income (AMI) may qualify for the full rebate.
Those earning between 80% and 150% of AMI may be eligible for a 50% rebate. HVAC Science Consumer Reports

How to Apply

Assess Eligibility: Determine which rebates and credits you qualify for based on your location, income, and the specific heat pump system.
Select Qualified Equipment: Ensure the heat pump meets the required efficiency standards.
Professional Installation: Hire a certified contractor to install the system.
Document Everything: Keep all receipts, product specifications, and contractor certifications.
Submit Applications: Apply for rebates through the respective programs and claim tax credits when filing your federal tax return. HVAC Science

Financing Options

To further ease the financial burden, consider exploring financing options such as low-interest loans, utility-sponsored financing programs, or incentives offered by manufacturers and contractors.

New AC Unit Rebates – Bryant AC Rebates

There are several rebates that customers may take advantage of. Below are links for you to reference about both local as well as national rebates that you may be able to use. Keep in mind that these programs are not finalized. Check back for updates from The Weather Changers!

The Weather Changers Rebates