Do I Qualify
- Use a contractor registered for the state heat pump tax credit.
- Equipment must meet the state's certification and sizing rules.
- Space heating equipment must meet at least 80% of annual heating needs.
- The invoice must separately show the State of Colorado Heat Pump Discount.
How Much Comes Off
| Equipment | Requirement | Amount |
|---|---|---|
| Air-source heat pump contractor tax credit | Eligible installation on or after January 1, 2026. | $1,000 per installation |
| Air-source heat pump minimum customer discount | Registered contractor claims the associated heat pump tax credit. | $333 per installation |
| Ground-, water-, or combined-source contractor tax credit | Eligible installation on or after January 1, 2026. | $2,000 per installation |
| Ground-, water-, or combined-source minimum customer discount | Registered contractor claims the associated heat pump tax credit. | $667 per installation |
Valid from January 1, 2026.
Who Files It
The registered contractor claims the tax credit. The homeowner does not file paperwork for the installation discount.
The money is paid to the contractor.
The Steps to Apply
- Choose a registered contractor and confirm equipment eligibility.
- Agree on the customer discount before installation.
- Check that the final invoice separately identifies the state discount.
Read on October 22, 2026 from the Colorado Energy Office page. A change to this program is a dated line in the changelog.