Can a TEP rebate lower my HVAC price?

Yes, if you are a TEP customer and hire a participating Efficient Home contractor. The rebate is taken off the price at the time of sale. As listed by TEP in October 2026, a heat pump quality installation was up to $720 and an AC quality installation up to $600. Confirm the current amount with TEP or the contractor.

Rebates and financing

Know which Tucson HVAC incentives are still open before you sign.

Q: Does Climate Pros Tucson offer HVAC financing?

No. Climate Pros Tucson is a referral service and does not lend money, arrange loans or set payments. Some contractors offer financing through their own partners. Ask the matched company for the lender name, rate, term and total financed cost in writing.

Q: Is there a federal tax credit for a heat pump installed in 2026?

No. The federal 25C credit covered qualifying property placed in service through December 31, 2025. A heat pump or AC installed in 2026 does not qualify. Ask a tax professional about a qualifying 2025 install.

The biggest live incentive for most Tucson homes is the TEP Efficient Home Program, an instant rebate taken off the price through a participating contractor. The federal 25C credit ended with 2025 installs, and Arizona has no state HVAC tax credit. Climate Pros Tucson matches you with a licensed local company. That company quotes equipment, labor, permits and any financing it actually offers.

Call (520) 353-2520 Heat pump options

Programs

Which HVAC rebates are worth checking in Tucson?

Start with who sends your electric bill. TEP serves the Tucson metro, and Trico Electric Cooperative serves parts of the northwest and the I-19 corridor. Incentives move, so treat this page as a planning guide, not a promise. Status checked October 2026.

TEP Efficient Home Program

TEP runs an instant rebate that comes off the price when you hire a participating Efficient Home contractor. As listed by TEP in October 2026, it covers a heat pump quality installation (up to $720), an AC quality installation (up to $600), duct sealing (up to $300, depending on leakage reduced), mini splits (up to $100 per ton) and AC tune-ups (up to $160 total). It applies when you retire an older working unit or a non-working AC.

Ask whether the company is a participating Efficient Home contractor before you sign. Amounts change, so confirm on tep.com or at quote time.

Trico Electric Cooperative

Trico is the non-profit electric cooperative for parts of northwest Tucson and Marana, south to Green Valley and Sahuarita. If Trico sends your electric bill, do not assume the TEP program covers your home.

Check with Trico directly about any current HVAC offer.

Southwest Gas

The Southwest Gas 2026 Arizona residential rebate application lists low-flow showerheads, clothes washers and windows. No furnace, thermostat or HVAC rebate appears on it.

Do not count a gas utility rebate on a furnace bid this year.

Efficiency Arizona (HEAR rebates)

The Arizona Governor's Office of Resiliency runs HEAR rebates for low- to moderate-income households. Under DOE guidance effective September 1, 2026, heat pump rebates apply to replacing existing electric equipment or heat pumps, not to swapping a gas furnace for electric. Applications are still accepted under the new rules.

Check eligibility at efficiencyarizona.com before you count on it.

Federal 25C tax credit (ended)

The IRS credit covered qualifying property placed in service from January 1, 2023 through December 31, 2025. A heat pump or AC installed in 2026 does not qualify.

Questions about a 2025 install go to a tax professional.

Arizona state tax credit

Arizona has no HVAC or heat pump tax credit. The state credit in A.R.S. 43-1083 covers solar energy devices only.

Leave it out of any HVAC math.

Repair or replace

When does financing a replacement make sense?

Financing is not automatically the right move. Get the repair price and the replacement price as two separate written quotes, then compare. Many contractors use the "5,000 rule" as a rule of thumb: multiply the unit's age by the repair cost, and if the result tops $5,000, replacement is worth pricing. It's a starting point, not a verdict.

If replacement wins, the quote should list the equipment model numbers, the permit, the load calculation and any TEP rebate as its own line. If a loan is part of it, ask for the total you'll pay over the full term, not only the monthly figure. Our guide to HVAC financing in Tucson walks through the questions in more detail.

Common questions

HVAC rebate and financing FAQ

Does Climate Pros Tucson offer financing?

No. Climate Pros Tucson doesn't lend money or set payments. Some contractors offer financing through their own partners. Ask for the lender name, rate, term and total financed cost in writing.

Will my rebate be approved?

No. TEP and the other program administrators decide eligibility. A participating contractor applies the TEP rebate at the time of sale. Climate Pros Tucson does not promise any approval or amount.

What should I ask before signing?

Ask for model numbers, efficiency ratings, the permit, the load calculation, warranty terms, ductwork assumptions, rebate paperwork and the total financed cost. You can also check the company's license at roc.az.gov.

Serving Tucson and Pima County

Need a real HVAC replacement number?

Call (520) 353-2520. Climate Pros Tucson matches you with a licensed local company that prices the system and confirms which incentives, if any, apply.

(520) 353-2520 Request a quote