State of Colorado Heat Pump Discount

For 2026, the minimum upfront customer discount is $333 for an air-source heat pump, funded from a $1,000 contractor tax credit. Ground-, water-, or combined-source systems have a minimum $667 customer discount from a $2,000 contractor credit. The customer discount is not the contractor’s tax credit.

Who may qualify

  • Colorado residents, businesses, and organizations may qualify when using a contractor registered with the program.
  • Equipment must be ENERGY STAR qualified. Air-source systems must be AHRI matched and designed to meet at least 80% of annual heating needs.
  • The 2026 minimum customer discount is $333 for air-source systems or $667 for ground-, water-, or combined-source systems.

How it Works

  1. Confirm eligibility, equipment requirements, and the contractor’s registration before work begins.
  2. Ask for the “State of Colorado Heat Pump Discount” to be listed separately on the invoice.
  3. The contractor files for the tax credit. No customer tax paperwork is required for the invoice discount.

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