Which HVAC rebates are open right now?
If TEP is your electric utility, one program is open to you: the TEP Efficient Home Program. If Trico Electric Cooperative serves your address, check with Trico instead. Arizona’s HEAR program is live but narrower than it was. The federal tax credits for heat pumps and air conditioners have ended. This note reflects each program’s status in October 2026, so recheck before you sign anything.
What does TEP’s Efficient Home Program pay?
TEP runs it as an instant rebate taken off the price. You get it through a participating Efficient Home contractor. As listed by TEP in October 2026:
| Upgrade | Amount TEP lists |
|---|---|
| Heat pump quality installation | up to $720 |
| AC quality installation | up to $600 |
| Duct sealing | up to $300, varies with leakage reduced |
| Mini split heat pump or AC | up to $100 per ton |
| AC tune-up | up to $160 total |
The tune-up total breaks down as $80 for a refrigerant charge repair, $40 for indoor coil cleaning and $40 for outdoor coil cleaning. These are ceilings, not promises. Amounts change, so confirm with TEP or the contractor when you get the quote.
The rebate applies when you retire an older working unit or a non-working AC, and the contractor has to be a participating one. TEP shows no end date on the page. Questions go to the program line at 866-473-8761.
What happened to the federal credits?
They ended. The 25C credit covered property placed in service before December 31, 2025, so a heat pump or AC installed in 2026 doesn’t qualify. The 25D credit, which included geothermal heat pumps, stopped for property placed in service after December 31, 2025. The IRS page on 25C has the details. Tax questions belong with a tax professional.
Arizona has no HVAC or heat pump tax credit either. The state’s solar credit under A.R.S. 43-1083 covers solar energy devices only.
Is Arizona’s HEAR program still worth checking?
For some households, yes. Efficiency Arizona runs HEAR for low- to moderate-income households, scheduled through 2031. Under federal guidance effective September 1, 2026, it no longer pays to replace gas appliances with electric ones. Heat pump rebates now apply to replacing existing electric equipment or heat pumps. Insulation or air-sealing standards may be required alongside. Applications are still accepted under the new guidelines.
What about Southwest Gas?
Southwest Gas’s 2026 Arizona residential rebate application lists low-flow showerheads, clothes washers and windows. No furnace, thermostat or HVAC rebate appears on it.
How do you actually claim the TEP rebate?
Ask the contractor first whether they’re a participating Efficient Home contractor and whether your project qualifies. Climate Pros Tucson matches you with licensed local pros, and the pro you’re matched with can tell you where they stand. For the full stack of what combines, read the heat pump rebate stack for Tucson and the federal 25C explainer. The TEP heat pump rebates guide walks through the steps.
Planning a replacement? See heat pump service and AC installation, or start at the Tucson HVAC hub.
Finding a participating contractor
If you want a licensed pro who can tell you whether your job qualifies, call (520) 353-2520 and we’ll match you with a licensed local pro.