Rebates Change Faster Than Websites Do. This Page Keeps Up.
Most of the rebate numbers you’ll find on Colorado HVAC websites — including big national ones — are already wrong. The federal 25C tax credit died on December 31, 2025. The $8,000 income-qualified HEAR rebate closed for the entire Front Range in April 2026. And Xcel cuts its heat pump rebates by a third on October 1, 2026.
This page tracks what’s actually claimable, what’s about to shrink, and what’s gone — with a verified date, so you know how fresh the information is. We update it because we file this paperwork every week and eat the awkward conversation when a homeowner was promised money that no longer exists.
Current Status of Every Colorado HVAC Rebate
Last verified: August 14, 2026. We re-check these programs against their sources and update this page when anything moves.
⏳ Active now, but being cut — deadlines apply
| Program | Worth today | What changes | To lock today’s rate |
|---|---|---|---|
| Xcel Energy cold-climate heat pump rebate Xcel electric customers replacing or adding heating | $2,250 per heating ton (typical 3-ton: ~$6,750) | Drops to $1,500/ton (~$4,500 on 3 tons) October 1, 2026 | Installed and invoiced by Sept 30; application filed by Oct 15 |
| Xcel Energy standard (non-cold-climate) heat pump rebate Xcel electric customers | $900 per cooling ton | Drops to $600/ton October 1, 2026 | Installed and invoiced by Sept 30; application filed by Oct 15 |
| Xcel gas-heating customer bonus multiplier Homes currently heating with Xcel gas that switch to a heat pump | 3× the standard heat pump rebate rate | Falls to 2× October 1, 2026 (announced to trade partners Aug 5) | Same Sept 30 install / Oct 15 filing window |
✅ Active with no announced end date
| Program | Worth | The fine print that matters |
|---|---|---|
| Colorado state heat pump tax credit (HB23-1272) Any Colorado homeowner using a registered contractor (we are one) | $1,000 air-source; $2,000 ground-source; $250 heat pump water heater | Claimed by the registered contractor, who must pass at least a third to you as a line-item discount on the invoice. No income limits. Was $1,500 in 2024 and $1,250 in 2025 — the step-down is scheduled in statute. |
| Power Ahead Colorado Denver metro homeowners | $1,500 for cold-climate certified heat pumps | Opened June 29, 2026 for the Denver metro. Funding-limited — these pools historically close early once committed. |
| Xcel Energy furnace and AC rebates Xcel customers installing qualifying high-efficiency equipment | Varies by equipment tier and program year | Smaller than the heat pump programs and revised on Xcel’s schedule; we confirm the current amount on every quote rather than publish a number that may lag. |
| HEAR income-qualified electrification rebate — Region 2 only Households at or below 150% of Area Median Income, outside the Front Range | Up to $8,000 heat pump; $1,750 HPWH; $4,000 panel; $1,600 weatherization | Region 2 (outside the Front Range) still accepting contractor-initiated applications. See the expired section for Region 1 — which covers our entire service area. |
❌ Expired — do not budget around these
| Program | Ended | What to know |
|---|---|---|
| Federal 25C tax credit (up to $2,000 heat pump / $600 furnace or AC) | December 31, 2025 | Terminated by Congress in July 2025. Installs placed in service by Dec 31, 2025 could claim it on 2025 returns; a 2026 install cannot. Any quote or article still promising "30% federal tax credit" is out of date. |
| Federal 25D credit (30% geothermal / solar) | December 31, 2025 | Ended by the same legislation. |
| HEAR income-qualified rebate — Region 1 (Front Range) | April 28, 2026 | The $8,000 income-qualified heat pump rebate closed for the Front Range — which includes every city we serve. Applications after April 27 are denied. If a contractor is still quoting HEAR money in the Denver metro, ask them for the open application number. |
Will My Rebate Actually Be Honored?
The question behind the question. Here is how the rules actually work:
- Utility rebates (Xcel) are locked by dates, not promises. For the October 1 change, your system must be installed and invoiced by September 30 and the application filed by October 15. A signed proposal or a scheduled install date does not lock a rate — completion does.
- The state credit depends on your contractor’s registration. The $1,000 Colorado heat pump credit is claimed by the contractor, who must be registered with the Colorado Energy Office and must show your share as a line item on the invoice. If a bidder can’t show you their registration, that credit is fiction on their quote.
- Tax credits follow the placed-in-service date. That’s why a 2026 install can’t claim the federal credit that existed in 2025 — no matter when the quote was signed.
- Funding-limited pools close early. Programs like Power Ahead Colorado stop when the money is committed, sometimes mid-season and with little notice. If a rebate matters to your budget, the application date matters more than the advertised end date.
- We put rebate risk in writing. Our quotes show the price, then each rebate as its own line with its filing status — never a single “price after incentives” number that hides what happens if a program moves.
Red Flag: Quotes Built on Dead Programs
If a 2026 quote in the Denver metro still includes a “30% federal tax credit” or “$8,000 HEAR rebate,” the contractor either doesn’t know the programs changed or is hoping you don’t. Either way, ask what the price is with zero rebates — that number is the honest basis for comparing bids.
The Price Without Any Rebate Is Still the Point
A rebate is a discount on a price — and the price is where the real money is. A $1,500 rebate on an overpriced install is worse than no rebate on a fair one. We publish our entire price sheet, we quote the no-rebate price first, and our installs are sized with an altitude-corrected Manual J instead of a nameplate guess — which is worth more over the life of the equipment than any single rebate cycle.
So: if you can complete an install before September 30, the current Xcel rates are genuinely worth catching. And if you can’t, you have not missed the boat — you’re comparing honest prices either way, and ours are published.
Frequently Asked Questions
Do you offer financing on HVAC installations?
Yes — we work with several financing providers for HVAC installations. Most homeowners qualify for 0% promotional financing for 12-24 months, or fixed-rate longer-term financing (5-10 years) on larger projects like heat pump or whole-home installations.
Typical financing options available
- 0% promotional financing — 12, 18, or 24 months. Pay it off within the term, no interest.
- Fixed-rate installments — 5-10 year terms at competitive rates for larger projects
- Reduced-rate financing — special promos sometimes available on heat pump installs
- Combined with rebates — Xcel and Colorado state rebates can be applied to financed amounts
How to Stack Rebates with Financing
The smart play on a heat pump or high-efficiency system is to finance the install at 0% for 12-18 months, then apply your Xcel rebate check and Colorado state credit directly to the principal once they land. By the time the promo period ends, you’ve often paid off a meaningful chunk of the loan with rebate money. (Note: this no longer includes a federal tax credit — 25C expired December 31, 2025.) This is what most of our customers do.
What you need to qualify
- Standard credit application (soft pull, doesn’t affect score)
- Decision typically same-day, often within minutes
- Most installations under $15,000 are approved without issue for homeowners with average or better credit
We don’t push financing — we offer it because it makes good projects accessible. Cash is always welcome too, and we’ve never charged a “cash discount” or “credit card surcharge.” Our pricing is our pricing.
Ask about financing at quote time and we’ll walk you through current options. Request a quote →
What HVAC rebates are available in Colorado?
2026 is the year the rebate picture changed. Two programs are genuinely active, one is being cut on a hard date, and two others that used to show up in these answers are gone. We file the paperwork on every install we do — but it helps to know what’s real before you budget around it. Full live status: our rebate tracker.
Active now — but Xcel is cut October 1
1. Xcel Energy Heat Pump Rebates (dropping ~1/3 on Oct 1, 2026)
- $2,250 per heating ton on cold-climate heat pumps through September 30 — drops to $1,500/ton after
- $900 per cooling ton on standard heat pumps through September 30 — drops to $600/ton after
- Gas-heating customers switching to a heat pump get a 3× bonus multiplier today, falling to 2× on October 1
- To lock today’s rate: installed and invoiced by Sept 30, application filed by Oct 15
2. Colorado State Heat Pump Tax Credit — active, no announced end date
- $1,000 for air-source heat pumps in 2026 (a scheduled step-down from $1,500 in 2024 and $1,250 in 2025)
- $2,000 for ground-source (geothermal) heat pumps; $250 for heat pump water heaters
- Claimed by our contractor registration and passed to you as a line-item discount — no income limits
3. Power Ahead Colorado — active, funding-limited
- $1,500 for cold-climate certified heat pumps in the Denver metro
- Opened June 29, 2026; these pools historically close early once committed
No longer available for a 2026 install
- Federal 25C tax credit (was up to $2,000 heat pump / $600 furnace or AC) — expired December 31, 2025
- HEAR / HEEHRA income-qualified rebate (was up to $8,000) — closed for the entire Front Range (our whole service area) on April 28, 2026; still open in Region 2 outside the Front Range
Total typical: ~$7,750 on a 3-ton cold-climate install (before Oct 1) — the honest number, with nothing in it that’s already expired.
Important notes
- Rebate amounts and deadlines move — this reflects programs verified as of the date on our tracker
- Not every piece of equipment qualifies — confirm before purchase
- If a quote you’re holding still lists the federal credit or HEAR/HEEHRA for a 2026 Front Range install, ask for the price with zero rebates — that’s the number that matters
We confirm exactly which incentives you qualify for at quote time and handle every filing. Request a free quote →
What size HVAC system do I need for my Colorado home?
Sizing an HVAC system in Colorado requires a Manual J load calculation — not a rule-of-thumb based on square footage. Altitude reduces combustion efficiency and air density meaningfully above 5,000 feet, which changes the math from sea-level guidelines.
Why Colorado sizing is different
- Altitude derate — combustion efficiency drops ~4% per 1,000 feet of elevation. A nameplate 80,000 BTU furnace in Denver is closer to 70,000 BTU in real output.
- Aggressive design temperatures — Denver winter design temp is around 1°F; Evergreen is closer to -10°F. Far colder than national averages.
- Big diurnal swings — 40°F overnight swings stress equipment differently than steady climates.
- Dry air changes humidity and infiltration calculations.
- Mixed housing stock — 1950s ranches in Wheat Ridge have radically different envelopes than 2020 builds in West Arvada.
Rough sizing guidelines (Manual J still required)
| Home Size | Furnace (BTU) | AC (Tons) |
|---|---|---|
| 1,200-1,800 sq ft | 60,000-80,000 | 2-2.5 |
| 1,800-2,500 sq ft | 80,000-100,000 | 2.5-3 |
| 2,500-3,500 sq ft | 100,000-120,000 | 3-3.5 |
| 3,500-5,000 sq ft | 120,000-140,000+ | 3.5-5 |
Don’t Trust Rule-of-Thumb Sizing
The biggest mistake we see — across the entire Front Range — is contractors sizing furnaces and AC units based on square footage alone. This produces oversized systems that short-cycle, fail to dehumidify properly, and wear out in 8-12 years instead of 15-20. We perform a free Manual J on every install quote.
What Manual J considers
- Square footage and ceiling heights
- Window count, orientation, glass type
- Wall, attic, and basement insulation R-values
- Air infiltration rate (ACH50 if known)
- Internal heat gains (people, appliances)
- Local outdoor design conditions
- Ductwork condition and capacity
When should I replace my AC instead of repairing it?
The traditional rule is the “5,000 rule”: multiply the repair cost by the age of the unit in years. If the result is over 5,000, replacement is usually the smarter spend. A $600 repair on a 10-year-old unit ($6,000) leans toward replacement; the same repair on a 4-year-old unit ($2,400) does not.
Strong replacement signals (almost always replace)
- R-22 refrigerant (Freon) — banned in the U.S. since 2020. Recharges cost $800+ when refrigerant is even available.
- Failed compressor — typically $1,800-$2,800 in a 10+ year old unit; a new system makes more sense
- System over 15 years old with any meaningful repair
- Multiple major repairs in the last 24 months — the system is telling you something
The decision in one table
Repair
- Under 10 years old
- Repair under $500
- R-410A or newer refrigerant
- SEER 14 or higher
- First major repair
Get Both Quotes
- 10-15 years old
- $500-$1,200 repair
- Energy bills creeping up
- Consider heat pump for rebates
Replace
- 15+ years old
- R-22 system
- Compressor failure
- Repair over $1,500
Modern 16+ SEER2 units cut summer electric costs 30-50% versus a 2010-era 13 SEER unit. Combined with a current Xcel rebate (confirmed at quote time), the payback on a replacement is often 4-6 years.
We’ll quote both repair and replacement honestly so you can make an informed call. See AC installation options →
Why do HVAC quotes vary so much between contractors?
Most “cheap” HVAC quotes are cheap because they’re skipping steps — improper sizing, no commissioning, lower-tier equipment, no permits, or undocumented work. The price differences between honest contractors and corner-cutting contractors are real and meaningful.
Why two quotes can differ by $3,000-$5,000
- Sizing methodology — Manual J vs. rule-of-thumb (proper sizing takes 2-3 hours and many contractors skip it)
- Equipment tier — entry-level Goodman vs. mid-tier Carrier vs. premium Lennox
- Installation standards — vacuum and proper refrigerant charge, or skip both?
- Permitting — pulled and inspected, or “we’ll skip the permit to save you the fee”?
- Warranty — lifetime workmanship vs. 1-year limited
- Disposal and recycling — properly recovered refrigerant, or vented to the atmosphere?
- Rebate filing — handled for you, or “you submit those yourself”?
Red Flags in Cheap Quotes
- “We don’t need to come measure” — they’re not doing Manual J
- “We’ll skip the permit to save you a few hundred” — illegal and voids warranty on resale
- “Cash discount if you decide today” — high-pressure sales tactic
- No written breakdown of equipment, labor, and rebates
- Can’t tell you the EPA 608 number of the tech doing the work
What an honest HVAC quote includes
- Manual J load calculation results
- Specific equipment model numbers (so you can verify rebate eligibility and reviews)
- Breakdown of labor, materials, and equipment
- All applicable rebates and tax credits identified
- Permit cost identified (and pulled by the contractor)
- Written warranty terms — workmanship and parts
- Timeline and disposal/recycling commitment
We give you everything above on every quote. If you’re getting multiple bids, ask each contractor for the same itemization — you’ll see why the prices differ. Request a quote from Right Way →
Related Reading
The full mechanics of each program — stacking rules, income tiers, filing steps — are in our complete Colorado rebate guide. Cost context lives in the heat pump, furnace replacement, and AC installation cost guides, and every number we charge is on the published price sheet.