Arizona Heat Pump Rebates & Tax Credits: Your Guide
Unlock significant savings on heat pump installation in Arizona. Explore federal tax credits, state-administered HEAR rebates, and local utility incentives from SRP, Mohave, and SSVEC. Learn how to stack programs and apply for maximum savings.
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Arizona homeowners can combine a federal 30% tax credit (up to $2,000 via IRS §25C) with point-of-sale rebates up to $8,000 (IRA §50123) and local utility rebates. This can significantly reduce heat pump costs before any payment is made.
Quick Answer: Arizona Heat Pump Rebates at a Glance
| Program | Max Benefit | Type | Income Limit |
|---|---|---|---|
| IRS §25C Energy Efficient Home Improvement Credit | $2,000/year | Federal tax credit | None |
| IRA §50123 HEAR Rebate (Arizona-administered) | $8,000 (HVAC) / $1,750 (water heater) | Point-of-sale rebate | 150% AMI |
| IRA §50122 HOMES Rebate | $8,000 | Performance rebate | None (LMI gets 2x) |
| Mohave Electric Cooperative | Varies | Utility rebate | Consult mohaveelectric.com |
| Sulphur Springs Valley EC (SSVEC) | Varies | Utility rebate | Consult ssvec.org |
| Salt River Project (SRP) | Business customers only | Utility rebate | Consult srpnet.com |
Regarding stacking: §25C can be combined with both the HEAR and HOMES rebates. However, HEAR and HOMES rebates cannot be applied to the same equipment.
Sources & Verification (4)
- IRC §25C — Energy Efficient Home Improvement Credit (30% up to $2,000 for heat pumps).
- IRC §45L — New Energy Efficient Home Credit for builders ($5,000 per ENERGY STAR home).
- DOE Home Energy Rebate Programs — HEEHRA & HOMES (Sections 50121 & 50122 of IRA).
- ENERGY STAR Most Efficient certification — DOE/EPA performance tier referenced in IRC §25C eligibility.
Last verified: June 7, 2026
Editorial process: See methodology →
How we verify: 9 source adapters (FAA, DSIRE, IRS, OpenStates, etc.) → AI draft → AI editor → AI polish → spot human review.
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- Google Nest Learning ThermostatWorks with cold-climate heat pumps and most utility demand-response rebate programs.
- Infrared Thermometer (Klein IR1)Verify heat-pump output temperature before and after install. Cheap validation tool inspectors appreciate.
- Mini-Split Installation Line Set KitIf you're doing a DIY-assist install (legal in some states), the line set is the bottleneck. Pre-flared copper pair.
- The Homeowner's Guide to Heat PumpsSelection, sizing, and rebate-stacking guide. Covers the IRA 25C credit, state rebates, and utility on-bill programs.