State of Colorado Heat Pump Water Heater Discount

For 2026, the minimum customer discount is $83, funded from a $250 contractor tax credit. This is an upfront invoice discount—not a $250 homeowner rebate. The registered contractor files for the tax credit; the customer has no tax-credit paperwork to complete.

Who may qualify

  • The installation must be in Colorado and use ENERGY STAR qualified equipment.
  • The installation must be completed by a contractor registered with the Colorado program.
  • The 2026 customer discount is at least $83. The contractor tax credit is $250; these are distinct amounts.

How it Works

  1. Confirm the equipment and registered contractor meet the program requirements before installation.
  2. Ask the contractor to show the “State of Colorado Heat Pump Discount” separately on the invoice.
  3. The contractor files for the tax credit. The customer receives the discount upfront and does not file tax-credit paperwork.

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