Federal Tax Credits and Incentives for Biz and Community Orgs
Federal Tax Credits & Incentives for Businesses and Community Organizations
Federal Tax Credits:
Federal tax credits for electrification (transition from gas to electric appliances), renewable energy, and building energy upgrades are available. Credits offset the upfront cost of electric appliances, energy efficient appliances, and other upgrades to reduce energy use and emissions.
Learn more about federal tax credits.
Common appliance upgrades that qualify for federal tax credits include:
- Heat Pump Water Heaters – 30% of cost, up to $2,000. Learn more about heat pump water heaters on LoveElectric’s website.
- Heat Pump Heating and Cooling - 30% of cost, up to $2,000. Learn more about electric heating and cooling on LoveElectric’s website.
- Upgrades to windows, doors, and/or insulation - $1,200 limit for adding insulation or installing efficient windows and doors per year
Find a qualified contractor through the Office of Energy Efficiency & Renewable Energy.
Please Note: Certain tax-exempt organizations are also eligible for incentives to offset the cost of electrification, renewable energy, and energy efficiency upgrades via direct pay or transfer options. To learn more, please visit the “Tax Credit Monetization” section on the Environmental Protection Agency’s website.
Please review the Credits and Deductions for Businesses section on the IRS website for more information about credits and deductions available for commercial entities.

Additional Resources:
The state and utility companies also provide funding opportunities for upgrades including electrification, renewable energy, and energy efficiency technologies.
Find incentives available to you
Businesses and tax-exempt organizations can receive the Colorado Heat Pump Tax Credit as an upfront discount on the installation cost of qualified heat pump technology through a registered contractor.
Utility Rebates: Find your local utility rebates! Many utilities offer rebates to offset the cost of home energy improvements.
Discover Utility Rebates