Colorado HVAC rebate guide

Check rebates before you sign.

Programs to check

Choose your project and the service on your Xcel bill. If you’re not sure about service, keep the possible programs in view until you confirm it. Each program’s eligibility rules still apply.

Selected service: Not sure · Project: Heat pump

1 · Service shown on the Xcel bill

2 · Project

Upcoming Xcel changeSep 30

The temporary Xcel cold-climate total is reported at $2,250 per heating ton through this date. The announced October 1 amount is $1,500 per heating ton. Confirm invoice, installation and submission rules with Xcel before relying on either amount.

Read Xcel’s Colorado filings ↗

4 records to check

Xcel Energy · Colorado residential

Cold-climate air-source heat pump

Amount requires final confirmation

$2,250 / heating ton at 5°F

Temporary 2026 total reported through September 30; announced to become $1,500 per heating ton October 1.

Requirement: Xcel electric service, qualifying matched equipment and a participating contractor. Capacity basis matters.
Timing: The higher amount depends on installation and invoice timing. Confirm the application cutoff before signing.
Source record: Xcel DSM filings ↗program refinements implemented Apr. 13, 2026

Power Ahead Colorado · DRCOG

Cold-climate ducted or ductless heat pump

Open program record

$1,500 flat rebate

The initial program phase covers qualifying cold-climate air-source systems in existing buildings.

Requirement: Existing building in a participating DRCOG jurisdiction, eligible equipment and an approved contractor.
Timing: The contractor must submit the project for preapproval before work begins.
Source record: Official program overview ↗checked Sep. 5, 2026

State of Colorado

Air-source or VRF heat-pump tax credit

Amount requires final confirmation

$1,000 statutory amount

For tax years 2026–2028. This is generally delivered through a registered installer as an invoice discount.

Requirement: Qualifying heat-pump technology installed in a Colorado building; current state form and installer registration still govern.
Timing: Equipment must be placed in service in the applicable tax year.
Source record: HB23-1272 enrolled act ↗2026–2028 schedule in statute

Federal · Section 25C

Residential HVAC improvement credit

Ended

Ended for 2026 projects

Heat pumps, furnaces, central AC and enabling electrical work placed in service after December 31, 2025 do not qualify.

Requirement: None for a 2026 installation; the former credit has terminated.
Timing: Placed-in-service date after Dec. 31, 2025.
Source record: IRS termination FAQ ↗current federal guidance

Indoor Mitsubishi Electric air handler beside ductwork, with equipment labels and drain piping visible — This indoor unit has equipment labels and drain piping visible. A rebate file still needs the exact indoor and outdoor model numbers from the proposal or equipment records.

What to have before you compare

Match the bill, the models and the dates.

Xcel billConfirm whether the address has electric, gas or both.
Model numbersAsk for the exact indoor and outdoor equipment combination.
Project timingRecord proposal, preapproval, installation and invoice dates.

Before work begins

Three checks for the rebate file.

01Before you signMatch service, equipment, contractor and quote language.02Dates & paperworkSeparate proposal, installation, invoice and submission dates.03Official program sourcesCheck the current rules before relying on an amount.

When the equipment is selected

Ask for the program name and exact model combination in writing.

UniColorado can review the installation scope alongside the available incentives. Final approval belongs to each program administrator.

Book an installation visit ↗Send an existing proposal ↗