Rebates and Tax Credits
HVAC Tax Credits and Rebates in Colorado
At Kappler Mechanical, we enjoy helping homeowners in Broomfield, CO, and throughout the Greater Denver area save money by improving energy efficiency.
Whether you plan to install a high-efficiency heating and cooling system, switch to a green energy solution, or enhance your home’s electrical capabilities, you can find a financial incentive to make the upgrade more affordable.
We have collected information from local utilities, state offices, and federal programs to help you understand how financial incentives can lower your cost of upgrading. Check out our comprehensive guide below!
Federal Tax Credits
Thanks to the Inflation Reduction Act, you can take a 30 percent tax credit for various home improvements made through 2032. The maximum credits are:
- Air conditioners up to $600
- Heat pumps up to $2,000
- Furnaces and boilers up to $600
- Geothermal systems up to 30 percent of the project cost with no maximum cap
- Solar panels up to 30 percent with no maximum cap
Credits are also available for home energy audits, electric panel upgrades, exterior doors, water heaters, insulation, and more.
The products must meet specific energy efficiency requirements to qualify for a tax credit. For more information, check out the ENERGY STAR® tax credit web page or visit the IRS page on the Energy Efficient Home Improvement Credit.
State Heat Pump Credit
Colorado offers state tax credits to qualified contractors for heat pump installation that rewards you with a discount.
Here is how it works: You choose a registered contractor to install your new heat pump. Be sure they agree to file for the heat pump tax credit, which requires them to pass along 33.33 percent as a discount.
Your contractor can get a $1,500 tax credit for an air-source heat pump while passing along a $499.95 discount to you. Install a geothermal heat pump system and get a $999.90 discount from the contractors.
Get more information about the tax credit and other financial incentives from the Colorado Energy Office.
City of Denver CARe
Denver homeowners can take advantage of the Denver CARe (Climate Action Rebate) program, which provides generous rebates for electrification and energy-efficient home upgrades.
This program has great options for Denver residents looking to reduce their carbon footprints.
Heat Pump Rebates: Denver offers up to $3,500 in rebates for installing heat pumps, a great solution to improving your home’s energy efficiency and year-round comfort.
Additional Rebates: Additional rebates for energy-saving measures include:
- Electrical Panel Upgrades: Get your home ready for future electrification.
- Heat Pump Water Heaters: Make your hot water system more efficient.
- Electric Vehicle Chargers: Get a rebate for electric car charging installations.
For more information on the Denver CARe program, visit the City of Denver’s Electrifying Homes. and Denver CARe FAQ.
Xcel Energy Rebates
Xcel Energy offers substantial rebates to Colorado customers who install energy-efficient heating and cooling systems, such as heat pumps.
Xcel Energy offers up to $2,250 per ton for qualifying air-source heat pumps, with a maximum rebate of $11,250. This is an excellent opportunity to reduce heating and cooling costs and make your home more energy efficient.
Additional rebates are available for heat pump water heaters, and other home improvements. For more details and to check your eligibility, visit Xcel Energy Heating and Cooling.
Energy Smart Rebates
If you live in Boulder County, Longmont, Louisville, or Erie, you can take advantage of the Energy Smart program, which offers rebates for various energy efficiency improvements.
Rebates are available for heat pump installations, electrification, high-efficiency heating systems, insulation, and more. These programs make upgrading your home’s efficiency more affordable and accessible.
Participating areas:
Start Saving With Rebates Today!
At Kappler Mechanical, we are dedicated to helping our customers navigate the rebates, tax credits, and financing options available for home electrification, HVAC upgrades, and energy efficiency improvement. Call us at 720-513-6481 or request service online.
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