1. What is the amount of the tax credit I am entitled to after purchasing a residential or commercial heat pump system or a heat pump water heater?
The income tax credit amount is equal to 10% of the purchase price of the heat pump system or heat pump water heater.
2. What is the amount of the tax credit I am entitled to after purchasing a residential energy storage system?
The income tax credit amount is equal to 10% of the purchase price of the energy storage system.
3. When does the income tax credit go into effect?
The credit for heat pump systems and heat pump water heaters is allowed for tax year 2023 only, including fiscal tax years that begin during 2023. The credit was repealed by House Bill 23-1272 and replaced with a new credit that will be allowed for heat pump technologies that will be allowed for tax year beginning on or after January 1, 2024.
The credit for residential energy storage systems is allowed for tax years 2023 and 2024, including fiscal tax years that begin during 2023 or 2024.
4. The credit went into effect January 1, 2023. What if I missed the 30 day window to report an assignment?
The Department promulgated an emergency rule that says if an assignment is accepted between January 1 and June 30, 2023, then the deadline to submit the DR 1307 or DR 1322 is August 30, 2023.
5. How do I submit the forms DR 1322 or DR 1307?
Submit a completed copy of Form DR 1322 or 1377 through the Department’s official web-submitter portal.
6. How do I receive Taxation Rulemaking notices for SB22-051?
Interested persons can sign up to receive rulemaking notices here (click on the gray “Sign Up For Rulemaking Notifications” link on the bottom right side of the page).