Quick Answer: Colorado homeowners can still stack serious HVAC savings in 2026, but only on heat pumps. The active programs right now: Xcel rebates up to $2,250 per ton, the new $1,500 Power Ahead Colorado rebate that opened June 29, and the state heat pump tax credit worth a guaranteed discount of at least $333. The federal tax credit ended December 31, 2025, and the $8,000 HEAR rebate closed for Front Range homes in April.
HVAC rebates in Colorado are still worth thousands of dollars in 2026, but the list of active programs changed twice this year. The federal credit died in December. The big income-based rebate ran out of Front Range money in April. And a brand new $1,500 rebate opened for the Denver metro just days ago. This guide covers exactly what you can claim right now in Commerce City, Denver, and the surrounding Front Range, with real numbers from official sources.
One thing to know up front: every major program pays for heat pumps. If you are weighing a heat pump against a new furnace, these incentives change the math, and our heat pump installation team can price both paths for you.
What HVAC Rebates Are Available in Colorado Right Now?
Four programs matter for Colorado homeowners in 2026, and three of them are active today:
| Program | What You Get | Status |
|---|---|---|
| Xcel Energy heat pump rebates | Up to $2,250 per ton on cold-climate systems | Active |
| Power Ahead Colorado (DRCOG) | Flat $1,500 on cold-climate heat pumps, no income limit | Active as of June 29, 2026 |
| Colorado heat pump tax credit | $1,000 credit, at least $333 off your invoice | Active |
| Federal 25C tax credit | Was up to $2,000 | Ended Dec 31, 2025 |
The $8,000 HEAR rebate for income-qualified households still exists on paper, but its Front Range funding is gone. More on that below.
Is the Federal Heat Pump Tax Credit Still Available in 2026?
No. The federal 25C tax credit, worth up to $2,000 for heat pumps, ended permanently for equipment installed after December 31, 2025. Any guide still promising you a federal credit on a 2026 installation is out of date.
One exception matters. If your heat pump went in during 2025, you can still claim that credit when you file your 2025 federal return using IRS Form 5695. Talk to your tax preparer, and keep your installation paperwork.
How Does the Colorado Heat Pump Tax Credit Work?
The Colorado heat pump tax credit gives you a discount on your invoice at installation, with zero paperwork on your end. Here is how the Colorado Energy Office structures it for 2026: the state pays a $1,000 tax credit for an air-source heat pump, and the registered contractor who claims it must pass at least one third of it, $333 or more, to you as a line item marked “State of Colorado Heat Pump Discount.”
Some contractors pass along more than the minimum, so ask when you compare quotes. Three rules decide if your installation qualifies:
- The contractor must be registered with the Colorado Energy Office. An unregistered installer cannot get you this discount at all.
- The equipment must qualify. Energy Star certified, AHRI matched, and sized to handle at least 80% of your home’s annual heating needs.
- Bigger credits for bigger systems. Ground-source, water-source, and combined-source heat pumps earn a $2,000 credit with a $667 minimum discount. Heat pump water heaters earn $250 with an $83 minimum.
These amounts stepped down from 2024 and 2025 levels as part of the program’s planned schedule, and they drop again in 2029. Waiting costs money.
How Much Are Xcel Heat Pump Rebates in 2026?
Xcel Energy pays up to $2,250 per ton of heating capacity on qualifying cold-climate heat pumps, which comes to as much as $6,750 on a typical 3-ton home system. Standard heat pumps that are not cold-climate rated earn far less per ton, so equipment choice decides most of your rebate.
That is not a small detail in our climate. A cold-climate unit is rated to keep heating through Front Range winter temperatures, and it happens to be the same equipment that unlocks the biggest rebate. Xcel applies the rebate through participating contractors, and it lands as a discount rather than a mail-in check. Xcel also runs a whole-home bonus that adds 25% when you pair the heat pump with upgrades like air sealing and insulation.
What Is Power Ahead Colorado?
Power Ahead Colorado is the Denver metro’s newest rebate: a flat $1,500 on a cold-climate heat pump, with no income limit, and it started accepting applications on June 29, 2026. The Denver Regional Council of Governments runs it with $273 million in funding, and Commerce City sits inside the eligible area along with the rest of Adams County and most of the metro.
The rules are simple:
- Existing homes only. New construction does not qualify.
- Cold-climate certified equipment, ducted or ductless. Same $1,500 either way.
- Apply before you install. Power Ahead is a pre-approval program, so the application goes in before the work starts. Bring it up when you schedule your estimate so the timing works in your favor.
Power Ahead stacks with Xcel rebates and the state tax credit. It does not stack with HEAR, and for Front Range homeowners that no longer matters.
What Happened to the $8,000 HEAR Rebate?
HEAR ran out of Front Range money on April 28, 2026. The program offered income-qualified households up to $8,000 toward a heat pump, and demand along the Front Range burned through the funding in under six months. Applications for Region 1, which includes Commerce City, Denver, and the metro counties, are now denied.
If you live outside the Front Range, Region 2 counties still have funding, and the state updates its dashboard three times a week. For everyone here in the metro, Power Ahead Colorado is the replacement, and it removed the income requirement entirely.
How Much Can You Save by Stacking Colorado Rebates?
An Xcel customer in Commerce City installing a 3-ton cold-climate heat pump can stack roughly $8,600 to $9,250 in incentives right now, with no income check anywhere in the pile. Here is the math:
| Incentive | Amount |
|---|---|
| Xcel cold-climate rebate ($2,250 x 3 tons) | Up to $6,750 |
| Power Ahead Colorado | $1,500 |
| State heat pump tax credit discount | $333 to $1,000 |
| Total | $8,583 to $9,250 |
Two rules govern the stack. Your combined incentives cannot exceed the total project cost, and each program checks its own eligibility. A contractor registered with these programs runs that math for you and puts every qualifying discount on the invoice before you pay, so you see the net price up front instead of chasing reimbursement checks.
Are There Rebates for Replacing a Furnace or AC in Colorado?
Not for standard equipment. Every major 2026 program, the state credit, Xcel’s big rebates, and Power Ahead, pays for heat pumps and electrification upgrades only. A standard gas furnace or a traditional central AC replacement does not qualify. Xcel has offered smaller rebates on high-efficiency gas furnaces, so ask when you get a quote, but the serious money is on the heat pump side.
That gap changes the buying decision. A heat pump replaces your furnace and your AC in one system, and after $8,000 or more in stacked incentives, it often competes head to head with a furnace-plus-AC combo on price. Our guide to heat pumps versus furnaces in Colorado walks through that comparison honestly, including when the furnace still wins. And if you are set on gas heat, our heating team will give you a straight price with no heat pump upsell.
Do I have to file paperwork to get these rebates?
No. For the state tax credit, the registered contractor claims the credit and your discount appears on the invoice. Xcel rebates and Power Ahead run through participating contractors the same way, though Power Ahead requires its application to be approved before installation begins.
What if I installed my heat pump in 2025?
You can still claim the federal 25C credit, worth up to $2,000, on your 2025 tax return using IRS Form 5695, since your equipment went in before the December 31, 2025 cutoff. The Colorado programs you used in 2025 are already settled on your invoice, and nothing else needs to be filed.
Get Every Dollar You Qualify For
Rebate programs change fast. This year alone, a federal credit died, an $8,000 program ran dry, and a new $1,500 rebate opened, all within six months. 360 HVAC Pro tracks these programs so Commerce City homeowners do not leave money on the table, and we price the heat pump path against the furnace path with real numbers, not a sales pitch.
Call or text us at (720) 925-2051, or schedule your free estimate online. We serve Commerce City, Denver, and the surrounding Front Range communities.
