Sustainability is more than just a marketing buzzword—for businesses of all shapes and sizes, ensuring more sustainable energy usage and smaller carbon footprints for their properties is about joining the global effort to keep the local and global environment healthy.
HVAC and other climate control systems represent ripe opportunities for upgrades and retrofits that make commercial buildings more energy-efficient and sustainable. However, many businesses find their sustainability goals stymied by the high upfront costs of new eco-friendly technology and equipment.
Fortunately, that’s why Colorado energy rebates and other commercial tax rebates for HVAC systems exist—removing some or all of the upfront costs of integrating new environmentally friendly HVAC technologies into your commercial properties so your energy-efficient climate control solutions can start paying for themselves, faster. In this blog, we’ll briefly touch on some of the options that exist in Colorado for business energy savings and answer your questions about Colorado energy efficiency rebates.
A Brief Overview of Colorado Energy Efficiency Rebates
Colorado has a wealth of natural beauty, and businesses across the state have a responsibility to preserve that beauty for future generations. By reducing energy consumption, energy-efficient HVAC systems prevent energy wastage, preserve the environment, and improve air quality both indoors and outdoors.
Business Energy Savings with Commercial Energy Rebates
The state of Colorado offers a plethora of tax rebates for HVAC systems and other business energy savings opportunities as part of its Green Business Program, which includes local, county, and state-level green business rebates, as well as grants, loans, and other financing options to help businesses cover the cost of upgrading their commercial properties and encourage you to make sustainable choices about their HVAC systems.
Colorado companies and organizations that offer energy efficiency rebates that cover commercial HVAC equipment include:
- C-PACE – Tax rebates for HVAC and electrical systems in historic buildings, including financing for up to 100% of energy efficiency, renewable energy, and water conservation eligible improvements
- Partners for a Clean Environment (PACE) – Energy efficiency and electrification programs, including commercial HVAC rebates of up to $2,000 per ton for heat pumps
- Poudre Valley REA – Heat pump, central air, and HVAC rebates of up to $700 per ton
- SAGE Free Products and Rebates – Up to $1,500 in business energy savings on Xcel-qualified products
- Walking Mountains Science Center – Business energy savings of up to $7,500 in a given year as part of Energy Smart for My Business
You can also find tax rebates for HVAC products available near you that are ENERGY STAR certified using their ENERGY STAR Rebate Finder tool.
Government Assistance with Building Electrification
The city of Denver offers residential and commercial property owners financial support for building electrification projects, which replace aging air conditioning and gas-fired climate control systems with electric heat pumps.
This program not only provides tax rebates for HVAC products but also helps building owners assess their options for electrification, choose the right equipment, and identify additional business energy savings opportunities.
Answering Your Questions About Commercial HVAC Rebates
Tax rebates for HVAC systems can be difficult for business owners to wrap their heads around, which can make it difficult to understand why they should seize these opportunities to more cost-effectively modernize their buildings’ HVAC systems. Let’s answer a few of the most common questions about energy efficiency and eco-friendly rebates:
What are the benefits of commercial tax rebates for HVAC systems?
- Cost Savings: Energy-efficient HVAC systems pay for themselves over time, but that doesn’t always make the immediate costs of upgrading easier to bear. Tax rebates for HVAC systems offset the initial purchase and installation costs so it takes less time for the savings on operational costs to outweigh the upfront costs.
- Increased Property Value: Taking advantage of business energy savings can increase the value of your commercial property since energy-efficient buildings often command higher rents and have better occupancy rates.
- Market Differentiation and Reputation: Taking advantage of Colorado energy rebates makes it easier to strengthen your brand and attract customers, employees, and investors who prioritize sustainability.
- Compliance and Future-Proofing: Commercial HVAC rebates help your business future-proof itself and comply with increasingly stringent environmental regulations.
What is the tax credit for IRA commercial energy efficiency?
While this blog post has mainly focused on Colorado energy rebates for commercial buildings, there is also no shortage of federal rebates that provide opportunities for businesses to save on energy costs and improve their sustainability.
The 2022 Inflation Reduction Act made significant strides to extend tax deductions for energy-efficient systems such as interior lighting, hot water systems, and HVAC systems. Section 179D in particular outlines the ways businesses can deduct the costs of purchasing and installing qualifying equipment in their buildings from their taxes.
Buildings meeting certain efficiency thresholds can save between $0.50 to $1 per square foot, which adds up with larger commercial properties—and businesses that meet certain wage and apprenticeship requirements can deduct up to $2.50 per square foot.
Unlock Business Energy Savings with Chiller Systems Service
The state of Colorado and the US government are making great strides to encourage businesses to be more eco-friendly by helping manage the upfront costs of HVAC systems and other technologies that reduce energy usage and carbon emissions. There are no shortage of options available, from Colorado energy efficiency rebates to federal IRA tax deductions for energy-efficient equipment, that are making eco-friendliness well within reach for businesses of all shapes and sizes.
Chiller Systems Service has a long track record of helping businesses across the Colorado Front Range analyze the energy efficiency of their existing HVAC systems, measure their energy impacts, and find opportunities to earn Colorado energy rebates. To get started on your journey to greater energy efficiency and environmental sustainability, contact us today.