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Rebates & Incentives

We guide Boulder County homeowners through HVAC rebates, stack incentives where possible, and file paperwork after installation. Below are the programs we work with most often.

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Colorado HEAR

HEAR rebates have ended for Boulder County

Colorado HEAR single-family funding for Region 1, including Boulder County and the Front Range, closed for new projects on April 28, 2026. Boulder County homeowners should not plan around a new HEAR heat pump rebate unless the project was already submitted or reserved before the funding closure.

We keep the HEAR guide available for reference because existing applications, reserved projects, and non-Boulder County programs may be handled differently. For new Boulder County heat pump projects, we will help compare currently available incentives instead.

Power Ahead Colorado

New heat pump rebate starting June 29, 2026

Power Ahead Colorado is launching a regional heat pump rebate for qualifying projects in DRCOG communities, including Boulder County. The initial rebate is listed as up to $1,500 per qualifying ducted cold-climate air-source heat pump system or up to $1,500 per qualifying ductless mini-split cold-climate heat pump system.

This is a preapproval-based rebate. A participating contractor needs to confirm the address, equipment match, Manual J, AHRI documentation, and program timing before installation. Rebate rules and funding can change, so we do not treat the amount as guaranteed until the project is approved and reserved.

Good fit for
  • Cold-climate ducted heat pumps
  • Qualifying ductless mini-split systems
  • Existing-home retrofits completed on or after June 29, 2026
Important limits
  • Can stack with some utility or local incentives
  • Cannot be combined with Colorado HEAR or HER incentives
  • Requires approval before installation
Efficiency Works

Longmont and Platte River utility rebates

Efficiency Works offers residential rebates for eligible electric customers of Longmont Power & Communications, Fort Collins Utilities, Loveland Utilities, and Estes Park Power and Communications. For Boulder County customers, this is most commonly relevant when the home is served by Longmont Power & Communications.

The 2026 HVAC incentives include ducted and partially ducted air-source heat pump rebates, non-ducted mini-split rebates, heat pump water heater rebates, service panel upgrade rebates, and load-sharing device rebates. Some projects may also qualify for a $2,000 bundling bonus when an eligible heat pump and eligible envelope upgrade are completed through the Retrofit Rebate program.

Examples from 2026 HVAC incentives
  • Ducted heat pumps: $1,500 to $2,000 per qualifying unit
  • Non-ducted heat pumps: $500 per ton, or $1,000 per ton when replacing electric baseboard heat
  • Heat pump water heaters: $400 to $600 per qualifying unit
Customer notes
  • Some rebates require an Efficiency Works listed service provider
  • Applications are generally due within 45 days of purchase or project completion
  • Total incentives over $2,500 require preapproval before work begins

Program amounts, caps, and funding can change. We will confirm the utility territory, equipment match, preapproval needs, and stacking rules before counting these rebates in a proposal.

Alert

Key update for 2025 federal tax credit proof

If your equipment was installed in 2025 and you are collecting documentation for the federal tax credit, be aware that AHRI updated its “Potential Eligibility for IRA Tax Credit” column on December 16 to reflect 2026 criteria. The online listings and printable product certificates now show 2026 eligibility only, which can look like a mistake for 2025 projects.

To find the correct 2025 eligibility details:
  1. Visit the AHRI Directory and click the “Help and FAQ’s” button on the left side.
  2. Download the Excel spreadsheet for your equipment type under “Tax Credit and Regulatory Information” by expanding “I need to know what equipment met the 2025 criteria…” and choosing either “Air Source Heat Pumps” or “Central Air Conditioners.”
  3. Use your AHRI reference number to match your system on the spreadsheet.

We can provide your AHRI reference number and help confirm the correct spreadsheet entry if you need support.

Xcel Energy

Save on High-Efficiency HVAC with Xcel Energy Rebates

Xcel Energy offers Colorado homeowners and commercial building owners valuable rebates when upgrading to energy-efficient heating and cooling systems such as high-efficiency furnaces, central air conditioners, and heat pumps. Rebates vary by equipment type and efficiency, but qualifying heat pump installations can earn substantial incentives. In many cases, rebates are structured per ton of system capacity and can total several thousand dollars when Xcel’s efficiency requirements are met.

At KJ Thomas Mechanical, we install equipment that meets Xcel Energy’s rebate standards and handle all rebate paperwork after installation. As an Xcel Energy Trade Partner, our projects may also qualify for Xcel’s bonus rebate programs when applicable, helping maximize your total savings.

Rebate programs and amounts are subject to change and funding availability. Current Xcel Energy HVAC rebates are expected to remain available through the spring of 2026, but customers are encouraged to act early, as programs may be modified or expire before that date.

Best fits
  • High-efficiency heat pumps sized for Boulder County weather
  • Gas furnace or AC upgrades that exceed Xcel minimums
  • Projects looking to stack bonus offers when available
How we help
  • Confirm qualifying model numbers and sizing before install
  • Collect install photos and documentation for submittal
  • File rebate paperwork and track status after completion