Heat pumps are the most rebate-stacked HVAC upgrade available to Denver-area homeowners right now. In 2026, qualifying installs can combine a Colorado state heat pump tax credit and Xcel Energy cold-climate heat pump rebates — together capturing nearly $10,000 in state credits and Xcel rebates for the largest cold-climate systems. Income-eligible households can stack even more through federal IRA point-of-sale rebates (HEEHRA / HOMES). This guide walks through every program currently available in the Denver metro, who qualifies, how to stack them legally, and how Goodfellas handles the paperwork on your behalf.
How Heat Pump Rebates Work in 2026
There are three layers of savings on a Denver-area heat pump installation: a Colorado state tax credit that reduces your state tax bill at filing time, an Xcel Energy utility rebate that comes off the install cost itself, and federal IRA point-of-sale rebates (HEEHRA / HOMES) for income-eligible households that arrive as upfront discounts.
Most homeowners in the Denver metro qualify for at least two of these layers, and income-eligible households often qualify for all three.
Colorado State Heat Pump Tax Credit
Colorado runs a state-level Heat Pump Tax Credit for qualifying heat pump installations performed by a registered installer. Goodfellas is a registered Colorado installer and verifies eligibility before quoting.
- Eligibility is tied to equipment efficiency and installer participation.
- The state credit stacks with the Xcel Energy utility rebate — a cold climate heat pump can capture nearly $10,000 in combined Colorado state credits and Xcel rebates, depending on system size.
- Goodfellas verifies eligibility and submits the paperwork; check the Colorado Energy Office electrification page for the latest program details.
Xcel Energy Cold-Climate Heat Pump Rebate
Xcel Energy runs a rebate program specifically for cold-climate heat pumps installed by Xcel trade partners. Goodfellas is an Xcel trade partner, so we submit the rebate paperwork on your behalf.
A qualifying cold climate heat pump can capture nearly $10,000 in combined Colorado state tax credits and Xcel rebates. For the largest cold-climate heat pumps, Xcel discounts the rebate upfront — meaning the savings come off the invoice the day of install, not weeks later. The Xcel rebate amount varies by the size of the heat pump.
- Tier-based: higher rebates for stronger low-temperature performance, larger system capacities, and higher SEER2 / HSPF2 ratings.
- Available to Xcel Energy electric customers across the Denver metro and most of Colorado’s Front Range.
- Largest cold-climate systems receive the rebate as an instant point-of-sale discount; smaller systems typically arrive as a check four to eight weeks after install.
- Goodfellas submits the paperwork as your Xcel trade partner — you do not fill out forms.
Federal IRA Point-of-Sale Rebates (HEEHRA / HOMES)
The Inflation Reduction Act funded two federal rebate programs the Colorado Energy Office is administering: HEEHRA (the High-Efficiency Electric Home Rebate Act) and HOMES (whole-home performance-based rebates). These are upfront point-of-sale discounts — not tax credits — so the savings come off the invoice.
- HEEHRA: up to $8,000 for a qualifying heat pump for households at or below 80% of area median income (AMI); up to $4,000 for households at 80–150% AMI.
- HOMES: performance-based rebates for whole-home retrofits that demonstrate modeled or measured energy reduction.
- Program rollout and active funding windows vary — we verify eligibility before quoting.
- Goodfellas helps you confirm eligibility and stacks HEEHRA cleanly with Colorado state credits and Xcel rebates.
Local Programs (Denver, Boulder County, and Beyond)
Cities and counties in the Denver metro periodically fund their own heat pump incentives on top of state, utility, and federal IRA programs. Denver’s CASR (Climate Action, Sustainability & Resiliency) office has historically offered incentives, and Boulder County, Adams County, and Jefferson County have run programs as well.
Active local programs change frequently. We track them in real time and apply the right ones to your project automatically.
How the Rebates Stack — A Sample Denver Home
Here’s how a stack might look for a typical Denver home replacing an aging gas furnace and AC with a qualifying cold-climate heat pump:
| Program | Estimated Value |
|---|---|
| Xcel Energy + Colorado State stack (cold-climate heat pump) | Up to nearly $10,000 combined (varies by system size) |
| IRA HEEHRA (if income-eligible) | Up to $8,000 |
| Local city / county incentive (when active) | Varies |
| Estimated total stack | Several thousand dollars; income-eligible households often more |
Actual savings depend on your home, the equipment installed, household income, and current program status. We provide a tailored stack estimate during your free in-home assessment.
Who Qualifies?
- Existing single-family or qualifying multifamily homes in Xcel Energy territory.
- Equipment must meet program-specific efficiency tiers — Xcel cold-climate certification for the utility rebate, Colorado-program-approved equipment for the state credit.
- Installation must be performed by a qualified, licensed, and insured contractor. Goodfellas is an Xcel trade partner serving the Denver metro.
- For HEEHRA point-of-sale rebates, household income relative to AMI determines tier.
How Goodfellas Handles the Rebate Process for You
- Free in-home assessment with rebate eligibility review.
- Equipment sizing and model selection that maximizes your rebate stack.
- We submit Xcel paperwork on your behalf — you do not fill out forms.
- We provide the manufacturer’s AHRI certificate and paid invoice you need for the Colorado state tax credit.
- We track program changes so you do not lose dollars to expired windows.
Why Choose Goodfellas
- Xcel Energy trade partner — direct rebate submission and current program intel.
- Authorized Lennox dealer with a deep bench of cold-climate-ready inventory.
- Fully licensed, insured, and certified for HVAC, plumbing, and electrical work in Colorado.
- One truck, one crew, one bill — heating, cooling, plumbing, and electrical under one roof.
- Hundreds of cold-climate heat pump installs across the Denver metro.
- Five-star reviews from your neighbors — see our Google reviews.
- Not sure you need a full system? Ask us about a free second opinion before you commit.
Frequently Asked Questions
Can I stack Colorado and Xcel heat pump rebates?
Yes. In most cases the layers stack — the Colorado state heat pump tax credit, the Xcel Energy utility rebate, and (for income-eligible households) the federal IRA HEEHRA point-of-sale rebate are independent programs. A cold climate heat pump can capture nearly $10,000 in combined Colorado state credits and Xcel rebates, and HEEHRA-eligible households can stack additional savings on top.
Does the Colorado heat pump tax credit give me cash back?
No. Tax credits reduce the Colorado state tax you owe at filing time, so a credit larger than your liability typically cannot generate a refund. Utility rebates from Xcel are direct dollar-off discounts or checks, and for the largest cold-climate heat pumps Xcel discounts the rebate upfront so it comes straight off your invoice.
Are ductless mini-splits eligible for the same rebates?
Yes, when they meet the program efficiency tiers. We install ductless cold-climate heat pumps that qualify for the Colorado state credit and Xcel cold-climate rebates. Ductless is often the right choice for additions, basements, or homes without existing ductwork.
How long does it take to receive the Xcel rebate?
For the largest cold-climate heat pumps, the Xcel rebate is discounted upfront so the savings come off your invoice the day of install. For smaller systems, Xcel typically issues the rebate as a check within four to eight weeks of submission. We submit the paperwork within days of install either way.
Do these rebates apply in Arvada, Boulder, Longmont, and Brighton?
Yes. Every Xcel Energy customer in the Denver metro is eligible for the Xcel cold-climate heat pump rebate regardless of city. The Colorado state heat pump credit applies statewide, and HEEHRA applies statewide for income-eligible households. Local city or county incentives vary by address.
What documents do I need to claim the Colorado state heat pump credit?
We provide the manufacturer’s AHRI certificate and a paid invoice — your CPA handles the filing. We are not tax advisors; for specifics, consult your accountant or the Colorado Energy Office.
Schedule Your Heat Pump Rebate Assessment in the Denver Metro
Get every rebate you qualify for. Call or text Goodfellas at (303) 457-4328 or request a free in-home assessment online. We serve the entire Denver metro — including Arvada, Boulder, Longmont, Brighton, Westminster, Northglenn, and Broomfield.
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Disclaimer: This article is for general information only and is not tax advice. Program details, rebate amounts, and eligibility criteria are subject to change. Consult your CPA or the Colorado Energy Office for specifics. Last reviewed for accuracy May 13, 2026.
