COLORADO HEAT PUMP TAX CREDIT
Starting in 2024, the state tax credit for heat pumps will transition to a fixed dollar value for the year the equipment is placed into service. The 2024 tax credit for a ground-source heat pump is $3,000 (other credits are available for air-source and heat pump water heaters, see Section 8 of HB23-1272 for more details).
This tax credit is to be administered by contractors who are certified on behalf of the Colorado Energy Office. Contractors will be able to retain up to 2/3rds (66%) of the tax credit for providing this service on behalf of the state for the 2024 tax year. In other words, a CEO certified contractor must offer their customer a minimum of 33% ($1,000) deduction in the cost of their project and will receive the full $3,000 tax refund in the next tax year. Technical details will be forthcoming on this process.
Contractors registered with the Colorado Energy Office will be published on a list of contractors eligible for the tax credit starting next year.
As Inflation Reduction Act rebates become available, the Colorado Energy Office will register contractors for those services as well, so be sure to review all communications from the CEO.
Complete this registration form to become eligible to receive State of Colorado heat pump tax credits.
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