If you’ve been putting off an HVAC upgrade because of the upfront cost, here’s something worth knowing: there are still meaningful ways to save on a new system in 2026. You just need to know where to look. The landscape for HVAC incentives has shifted this year, and we want to make sure our customers in Pueblo, Colorado Springs and the surrounding communities have an accurate picture of what’s out there before they make a decision.
What Changed in 2026: The Federal Tax Credits Are Gone
Let’s start with the news that surprised a lot of homeowners. The federal Energy Efficient Home Improvement Credit, known as Section 25C, expired on December 31, 2025. This was the program that offered up to $2,000 back on qualifying heat pump installations and up to $1,200 for other high-efficiency HVAC improvements. If you installed a qualifying system before the end of last year, you can still claim that credit when you file your 2025 taxes. But for systems installed in 2026 and beyond, that federal pathway is no longer available.
The good news? Federal credits were never the only way to save, and in Southern Colorado specifically, there are still solid options on the table.
Black Hills Energy Rebates For Pueblo and Southern Colorado Customers
If Black Hills Energy is your utility provider, which covers much of Pueblo and surrounding Southern Colorado communities, their residential rebate program is still active for 2026. Black Hills offers rebates for qualifying high-efficiency HVAC equipment including central air conditioners, heat pump ductless mini splits, and air source heat pumps. To qualify, equipment must be purchased and installed between January 1 and December 31, 2026, and your application must be submitted by January 31, 2027.
A few important things to know: rebates are processed on a first-come, first-served basis and are subject to available funding, so earlier is better. You’ll want to make sure the equipment you choose meets Black Hills’ efficiency requirements before you buy.
For full details and to download the application, visit blackhillsenergy.com or call their help line at 888-567-0799.
Colorado Springs Utilities Rebates: For Colorado Springs Customers
If you’re served by Colorado Springs Utilities, CSU runs its own independent rebate program with incentives for heat pumps, heat pump water heaters and weatherization upgrades. Income-qualified customers have access to enhanced rebate amounts through CSU’s low-income programs.
Check csu.org for current rebate amounts and eligibility requirements, as these can change throughout the year.
Income-Qualified? The Colorado HEAR Program May Help
The Colorado Home Electrification and Appliance Rebates (HEAR) program is a federally funded initiative administered through the Colorado Energy Office. For households that qualify based on income, it can offer significant assistance. Qualifying households at or below 80% of area median income may be eligible for up to $8,000 toward a qualifying heat pump installation.
It’s worth noting that some regions of Colorado have seen HEAR funding fill up quickly, so availability can vary. Contact the Colorado Energy Office directly to check current program status in your area.
Don’t Overlook Manufacturer Rebates
Beyond utility programs, many HVAC equipment manufacturers offer their own seasonal rebates and promotional financing on qualifying systems. These can sometimes be stacked with utility rebates, making them worth asking about when you’re comparing options. Flow Right works with leading equipment brands and can help you identify any manufacturer incentives that apply to the system you’re considering.
The Bottom Line: It Pays to Ask
Navigating rebates and incentives can feel overwhelming, especially when programs change from year to year. The most important thing you can do before committing to an HVAC upgrade is ask. Ask your utility provider what’s currently available. Ask your contractor whether the equipment qualifies. And ask about financing options that can make the upfront cost more manageable while you wait for rebates to process.
At Flow Right, we offer complimentary estimates and we’re happy to walk you through the options that make the most sense for your home, your budget and your location in Southern Colorado. Whether you’re replacing an aging AC, upgrading to a heat pump or adding a mini split to a hard-to-cool room, we’ll help you make the most of every dollar.