There are several rebates, tax credits, and incentives available to Durango and surrounding area residents.
At Pinnacle Building Performance, we want to help you maximize your savings, so we’ve put together this list of incentives to make the process easier. Here’s what they mean for your home and how Pinnacle Building Performance can help you achieve your energy efficiency goals.
Inflation Reduction Act Tax Credits & Rebates
The Inflation Reduction Act (IRA) of 2022 allows homeowners throughout the country to afford home performance upgrades. As the largest act of Congress to fight against climate change, the federal government has created and revitalized several tax credits and rebates to make clean energy more accessible for all.
25C Tax Credit
The Energy Efficient Home Improvement Tax Credit improved on an older tax credit and now allows homeowners to save up to 30% (as much as $3,200 every year) on qualifying home improvements. Also known as 25C, this IRA tax credit is available now through 2032 and can be filed with your annual tax returns.
Pinnacle Building Performance provides the following eligible services throughout Durango and surrounding areas:
- Energy audits ($150 maximum credit)
- Insulation and air sealing (credit for materials only, $1,200 annual limit)
- Heat pump installation (credit for materials and installation, $2,000 annual limit)
HOMES & Other IRA Rebates
The Inflation Reduction Act also includes two rebate programs aimed to incentivize electrification and other efficiency upgrades. These rebates are not currently available to homeowners, and each state is responsible for applying for and distributing funds to their residents. However, Colorado does plan to apply for funding to both IRA rebate programs at the earliest opportunity. Here is more information about what these rebates entail:
- The Home Owner Managing Energy Savings (HOMES) program provides up to $4,000 in rebates for home performance retrofit projects, with up to $8,000 in additional rebates for low and moderate income households.
- The High-Efficiency Electric Home rebate program is designed exclusively for low to moderate income households and offers rebates up to $14,000. These rebates cannot be combined with the HOMES program or any other federal grants and rebates.
Pinnacle Building Performance is keeping a close watch on Colorado’s timeline for the Inflation Reduction Act rebates and will update our clients as soon as we have more details.
Local Rebates & Incentives For Colorado’s Western Slope
Here is a list of available rebates through Durango’s local utility companies and the Colorado state government.
Statewide Tax Credits
In a new state law that went into effect on January 1, 2023, Colorado residents can claim 10% of the cost of heat pump equipment—not including installation—in state tax credits. Heat pumps and heat pump water heaters also qualify for a sales tax exemption, which will be applied at the point of sale.
La Plata Electric Association (LPEA)
There are several LPEA rebates for energy efficiency improvements, including:
- Energy audits ($150 rebate)
- Heat pump installation (up to $3,500 for cold-climate heat pumps or up to $2,500 for other high-efficiency air-source heat pumps)
- Weatherization (only available for income-qualified LPEA members, contact them for details)
To claim these rebates, homeowners must submit the required paperwork to LPEA within 90 days of purchase or installation. The LPEA rebates are only available while funds last, so contact Pinnacle Building Performance to get started today. We can even help with the paperwork!
Empire Electric Association, Inc. Rebates
Empire Electric rebates include up to 50% of the total of both high-efficiency and cold-climate heat pumps, though the rebate amount varies depending on the size of your system. They also offer weatherization rebates for low-income households. All paperwork must be sent to Empire Electric within 90 days of purchase or installation, and Pinnacle Building Performance can make sure you have everything you need to qualify.
Don’t Wait for Energy Efficiency
Pinnacle Building Performance does not encourage waiting for IRA rebates—or any other incentive for that matter—to make improvements on your home. There is no saying exactly when rebates will become available or how long they will last. Colorado already has a number of great incentives available to claim now, including the IRA tax credits and the local co-op rebates. We do not yet know if these will be able to be combined with federal rebates or not, so there’s no reason to wait.
Every month you wait, you’re missing the opportunity to take advantage of the many benefits a more energy efficient home can provide, like:
- Lower heating and cooling costs
- Increased home comfort
- Better indoor air quality
- Cleaner energy