If you’ve been considering a heat pump upgrade, this summer has a concrete reason to move forward. Efficiency Works is offering a $2,000 bundling bonus in 2026 for eligible residential electric customers of City of Loveland Utilities who pair a qualifying heat pump installation with qualifying envelope improvements. The heat pump rebates available to eligible Loveland, CO, homeowners in 2026 may include Efficiency Works incentives, including the $2,000 bundling bonus, but the federal 25C heat pump tax credit should not be presented as active for 2026 installations.

 Quick Answer: Heat Pump Rebates in Loveland, CO

City of Loveland Utilities residential electric customers can qualify for a $2,000 bundling bonus through Efficiency Works when they combine a qualifying heat pump with eligible envelope measures such as air sealing, windows and sliding glass doors, or doors. Efficiency Works lists 2026 heat pump rebates that vary by system type and tier, and eligible projects may also qualify for the $2,000 bundling bonus when paired with eligible envelope measures. To access Efficiency Works rebates, eligible homeowners must work with a listed Efficiency Works service provider, and some envelope measures require a home efficiency assessment before the work begins.

How the Efficiency Works Bundling Bonus Works

The $2,000 bonus is part of the Efficiency Works Retrofit Rebate program, which applies to eligible residential electric customers of City of Loveland Utilities, Fort Collins Utilities, Longmont Power & Communications, and Estes Park Power and Communications. Both the heat pump and the qualifying envelope upgrade, such as air sealing, windows, sliding glass doors, or doors, must be completed within six months of each other. The total rebates plus the bonus cannot exceed the combined project cost.

Requirements before you start: 

• Your home must be at least one year old: single-family detached, attached townhome, or multifamily of four units or fewer.
• A home efficiency assessment may be required before certain qualifying envelope improvements, while heat pump rebates also have separate equipment, service-provider, documentation, and application requirements.
• Work must be completed by a listed Efficiency Works service provider.
• Funding is limited and subject to change.

The bundling bonus applies to eligible space heating and cooling heat pump measures paired with eligible envelope measures, but heat pump water heaters are excluded from the bundling bonus.

What Should Loveland Homeowners Know About Federal Tax Credit Changes?

Homeowners should look beyond the Efficiency Works bonus and confirm which federal, state, and utility incentives are still active for their installation year.

Key points to know:

• The federal 25C heat pump tax credit expired for 2026 installations.
• The credit previously covered 30 percent of the cost of a qualifying heat pump, up to $2,000 per year.
• It applied to qualifying property installed or placed in service through December 31, 2025.
• A Loveland homeowner installing a heat pump in 2026 may still qualify for local incentives through Efficiency Works.
• The total rebate amount depends on:
  • System type
  • Project eligibility
  • Total project cost
  • Available funding
  • Whether the project qualifies for the $2,000 bundling bonus

The application paths are also different:

• For qualifying 2025 projects, the federal credit was claimed on a tax return.
• For 2026 Efficiency Works rebates, applications are handled through the program’s rebate process.
• Efficiency Works retrofit rebate applications must be submitted within 45 days of purchase or project completion, and applicable HVAC and envelope rebate work must be installed by an Efficiency Works Homes listed service provider.
• For Efficiency Works HVAC rebates, total incentive amounts over $2,500 require preapproval before upgrades begin; applications over that amount without preapproval may have the total incentive value capped at $2,500.

For 2026 installations, homeowners should verify current local, state, and utility incentives instead of relying on the expired federal 25C heat pump tax credit. Some incentives may be combined when eligibility rules allow, but homeowners should confirm the order of rebates, tax credits, and project-cost limits before counting the full amount.

Why Northern Colorado’s Climate Makes the Timing Right

Loveland’s winters are cold and the summers keep pushing higher. A heat pump handles both in one system, unlike a furnace-and-AC setup that requires separate equipment replacements down the road.

Modern cold-climate heat pumps operate efficiently down to around 5 degrees Fahrenheit. For Loveland’s average winter lows, a properly sized cold-climate heat pump can cover many heating needs, but backup or dual-fuel heat may still be recommended depending on the home, system sizing, and sub-5-degree cold snaps. On the cooling side, the same unit runs your air conditioning through the summer. When you factor in current rebates and energy rates, a heat pump may pencil out better than a straight furnace replacement for some homes, depending on system design, utility rates, backup heat needs, and total project cost.

If your heat pump or air conditioner is more than 10 years old, or your furnace is more than 15 years old, it may be time to discuss repair versus replacement with an HVAC professional. Installing now may help you capture eligible rebates while funding is still available. Waiting means paying another season on aging equipment and potentially missing the funding window entirely.

Final Thoughts on Heat Pump Rebates in Loveland, CO

The 2026 Efficiency Works bundling bonus can make this a useful window for eligible Loveland homeowners considering a system replacement, but the federal 25C heat pump tax credit should not be included for 2026 installations. The Efficiency Works 2026 rebates are documented, but funding is limited, subject to budget availability, and program requirements, rebate values, deadlines, and caps may change without advance notice.

1st Action Plumbing, Heating & Air serves Loveland and the surrounding Northern Colorado communities. Our HVAC services team handles heat pump installations and can walk through which rebates apply to your specific project before any work begins. Give us a call or request a free estimate online.