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Coloradans will need to act fast if they want to take advantage of a suite of federal tax credits for home energy upgrades and electric vehicles. 

The g signed by President Donald Trump rolls back many of the clean energy incentives created under the Inflation Reduction Act, a major climate measure passed under former President Joe Biden to help incentivize the move away from fossil fuels. 

The climate law includes billions of dollars’ worth of tax credits and rebates to help consumers make their homes more energy-efficient and reduce their greenhouse gas emissions. While many of those incentives were set to last for up to a decade, Trump’s law eliminates certain tax credits as soon as this year. 

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It also accelerates the phase-out of corporate tax credits meant to spur more private investment in clean energy development, and instead seeks to increase domestic oil and gas production. 

In Colorado’s mountain towns, where energy costs can soar and natural gas supplies face greater constraints, the loss of federal benefits could make pursuing electric energy harder for some residents. 

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“It is going to make these investments more expensive for people,” said Jess Hoover, climate action director for the High Country Conservation Center, a Summit County-based nonprofit. 

Still, some Inflation Reduction Act incentive programs were preserved under the new federal law, specifically rebates meant to help reduce the upfront costs of certain appliances and upgrades. 

Local groups based throughout the Western Slope also continue to offer subsidies that homeowners can tap into to help pay for their energy projects. 

Here’s a look at what’s available and what’s going away: 

Tax credits for appliances, solar and EVs end soon

For the past two years, taxpayers have been able to take advantage of thousands of dollars in tax credits for clean energy upgrades and electric vehicles under the Inflation Reduction Act. A tax credit lowers the amount a person owes on their taxes. 

Trump’s tax law reverses course, phasing out these credits much sooner than their initial 2032 end date.

That includes the , which provides up to $3,200 for heat pumps, water heaters and biomass stoves and boilers, as well as home efficiency measures such as air sealing, insulation, new doors and windows. 

The credit now ends on Dec. 31 of this year, and homeowners will need to have their upgrades placed in service before then to take advantage of the credit come next tax season.

The , which covers 30% of the cost of solar installation for a home, also expires on Dec. 31. Unlike the energy efficiency credit, however, homeowners only need to have “all expenditures paid” before the credit expires to be able to use it next tax season. 

Hoover said residents should consult with a local tax expert to understand what they need to have in place before the cutoff to make sure they still qualify for the tax credit. 

Also ending this year is the , which covers up to $7,500 for certain new electric vehicles and $4,000 for used electric vehicles. It will end on Sept. 30. 

Another incentive, the , which gives benefits for installing electric vehicle chargers, will end on June 30, 2026. 

$14,000 in rebates still coming down the pike

While Coloradans have a short window to act if they want to take advantage of tax incentives, they should have more time to tap into clean energy rebates that were left untouched by Trump’s new law. 

Unlike a tax credit, consumers don’t have to wait until tax season to see the benefit of a rebate. Instead, they can use a rebate to cover part of their upfront costs, providing households with a more immediate discount. 

“To some degree, the tax credits were a ‘nice to have,’ whereas the rebates tend to be more readily available and more quickly implemented,” said Kasey Provorse, executive director for the Western Slope-based nonprofit Energy Smart Colorado. 

Biden’s climate law includes up to $14,000 worth of rebates that can be applied to a slew of home upgrades and appliances. That includes: 

• Up to $8,000 for a cold climate heat pump for space heating or cooling
• Up to $4,000 for a breaker box upgrade
• Up to $2,500 for electric wiring 
• Up to $1,750 for a heat pump water heater
• Up to $1,600 for insulation, air sealing and ventilation 
• Up to $840 for an electric stove, cooktop, oven or heat pump clothes dryer

The rebates are income-based. Households making below 80% of their area median income are eligible to receive the full amount, while those making between 80% and 150% could see up to half.

Funding for the rebates, which is split into two programs, is being administered by states, several of which have already stood up their programs. 

Colorado for its rebate programs, which could launch before the end of this year caused by the Trump administration’s federal funding freeze. The rebates are expected to be available through 2029, or until funds run out. 

Colorado Energy Office spokesperson Josh Chetwynd said in a statement that the office “has been working with the U.S. Department of Energy over the past months to obtain final approval on program details, such as consumer protection, data security, and outreach plans.” 

“We look forward to launching these programs and to bring energy and cost-saving technology to Coloradans across the state,” he said. 

More information on the rebate programs can be found on . 

Local program can help ‘soften the blow’ 

Cuts to clean energy funding in the new tax law could raise energy costs nationwide. 

A projects that the measure could increase energy costs for U.S. households and businesses by $28 billion annually in 2030 and by over $50 billion in 2035. That equates to a roughly $165 increase per household per year in 2030 and a $230 increase by 2035, according to the study. 

Yet despite fewer federal incentives, a strong network of local programs exists to offer similar benefits for homeowners across the Western Slope, clean energy advocates say. As Hoover put it, “We can help to soften the blow.”

“The average American is looking at higher energy bills, which means these energy investments are still important,” she said. “Historically, electricity has been less volatile because it’s not subject to the same market fluctuations that gas is.” 

Groups like High Country Conservation Center, alongside local governments, partner with Energy Smart Colorado to offer a host of community-specific rebates to help households pay for electrification and efficiency upgrades. 

Energy Smart Colorado currently offers programs in more than a dozen Western Colorado counties, including Summit, Eagle, Pitkin, Garfield, Routt and Moffat.

Subsidies can help cover a range of investments, including home energy assessments, insulation, new appliances and solar installation, though the exact benefits differ by county. 

“It’s certainly disappointing that we don’t have the ability to stack the tax credits, but fortunately, we do have really strong local rebates from our partners,” Provorse said. 

Provorse said that in counties with a rebate program, more households pursue energy efficiency projects. She said the programs have been especially impactful for rural areas where energy access is limited. 

In the Yampa Valley region, for example, two-thirds of households that have requested energy assessments this year aren’t serviced by a natural gas line and instead rely on propane, according to Provorse. 

While generally considered to be a cleaner-burning fuel than natural gas, propane can also be two to three times more expensive, Provorse said, which is why she encourages residents to look into local benefits for electric appliances and efficiency upgrades. 

“Our communities still have good opportunities to bring down costs to make energy efficiency and electrification improvements,” Provorse said. 

More information on Energy Smart Colorado’s local rebate programs and partnering counties can be found online at .