Heat Pump Tax Incentives
Navigating tax incentives for heat pump installation can be complicated, but we’re here to help. Our team of experts will guide you through the process of accessing federal, state, and local tax incentives for your heating system. We take the stress out of the tax rebate research, so you can focus on the savings and benefits of your new heat pump.
Federal
Did you know that you can receive federal tax rebates by choosing to install a heat pump through Efficient Designs? Our team of experts will take care of everything, from start to finish, ensuring that you get the best possible deal while enjoying optimal comfort levels in your space. Contact us today and make the most out of the Inflation Reduction Act!
State
Investing in a heat pump installation is a smart move for your home and your wallet. With the high efficiency electric home rebates act, you may qualify for state tax rebates that make the decision even more financially attractive. Our team at Efficient Designs provides expert installation services, ensuring your new heat pump runs smoothly and efficiently.
Local
Looking to save money on your heat pump installation? Look no further than our local tax rebates! Our team is constantly in the know regarding all the rebates and incentives available for heat pump installation in your area. We'll work with you to navigate the complicated process and secure as many savings as possible. Plus, we can also provide information on local non-profits and the local utility company to help you save even more.
Claiming Your Federal Tax Credits
Geothermal heat pump rebates are 30% of the total costs. Use Line 4 on form 5695.
Air source heat pumps are 30% of the cost, up to $2000. Use line 29a on form 5695.
IRS Form 5695 is used to claim the Residential Energy Credit. Links to the form and pertinent reference documents are below:
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Claiming Your State Tax Credit
Efficient Designs LLC is a registered contractor through the state of Colorado, which can give you up to an additional $1,500 off your air source heat pump install. Click here to see the list of registered contractors.
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To learn more about the State of Colorado heat pump tax credits visit their website here.
Coming in 2024:
High-Efficiency Electric Home Rebates Act
The Federal rebates from the Inflation Reduction Act are set to begin sometime in 2024. This is great news for homeowners looking to upgrade their heating and cooling systems while also saving on energy costs. The rebates will help incentivize the use of heat pumps, which are more energy-efficient and eco-friendly than traditional HVAC systems. Keep an eye out for more details on how to take advantage of these rebates as they become available.
Check out Rewiring America to learn more about Colorado's state rebates.
Claiming Local Tax Credits
Utility rebates and city programs are two different options available to help you save money on your energy bills. Utility rebates are offered by your energy provider and provide financial incentives for installing energy-efficient upgrades. On the other hand, city programs are offered by your local government and often provide additional resources and support for energy-efficient upgrades. By taking advantage of both options, you can maximize your savings and reduce your environmental impact.
Full List of Local Non-Profit and Utility Rebates
To learn more about rebates from every local utilities and non-profits in Colorado check out Love Electric
Non-Profit Rebates
Walking Mountain Science Center Rebates:
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$3,000/year Residential Rebate. Rebate not to exceed 25% of total project costs for any project
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$5,000/year LMI Household Rebate. Rebate not to exceed 50% of total project costs for any project. ​​Low-moderate-income (LMI) households with a max income allowed of 150% Area Median Income (AMI); must provide income documentation.
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To learn more about Walking Mountain Science Center Rebates check out their website here.
Utility Rebates
Xcel Rebate Qualifications:
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Rebate: $2,200
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Efficiency Minimums: 18 SEER2, 11.7 EER2, 8.1 HSPF2
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Additional Requirements: Must have a low temp heating efficiency (COP at 5° F >= 1.75 AND on ashp.neep.org. The heating capacity at 5° F must be at least 70% of the 47° F rated heating capacity.
Holy Cross Rebate Qualifications:
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Rebate $5,000/year per account $15,000/year per member
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Retrofits Rebate Amount Maximum Rebates Residential 25% of total project cost for any qualifying project
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Invoices must be dated within 90 days of applying for rebate. Questions: rebates@holycross.com or 970.947.5473