The Ultimate Guide to HVAC Rebates & Incentives in Arizona

Tax rebates for new HVAC systems can help you save money and maximize your investment in home efficiency and comfort. To help you identify money-saving opportunities for your new system, we explore:

Read on for more information on HVAC rebates in 2025.

Air conditioner rebates, tax credits, and utility incentives can all help you cut down on the cost of upgrading your heating and cooling system. Utility companies or manufacturers typically offer rebates, and they give you money back after installing a new HVAC system. Tax credits, on the other hand, reduce what you owe on your state or federal income taxes. Some rebates apply to your purchase upfront, reducing your out-of-pocket cost, while federal tax credits come during tax season.

In Arizona, many utility companies offer rebates for installing high-efficiency HVAC systems. To qualify, your equipment must meet minimum efficiency standards, such as a SEER rating of at least 15 or Energy Star certification. Understanding the type of incentive available and its requirements is key to saving money on your new HVAC system.

As an Arizona homeowner, you can access several incentive programs that make upgrading your HVAC system more affordable. Rebates for heat pumps are especially popular, as these systems provide heating and cooling, qualifying them for dual incentives.

Utility companies in Arizona often offer rebates for installing high-efficiency heat pumps and air conditioners with minimum SEER2 ratings. Under recent federal legislation, new government rebates for HVAC systems offer additional savings on heat pump installations, especially for income-qualifying households. High-efficiency central AC units may also qualify if they meet Energy Star standards.

You can take advantage of local and federal incentives by upgrading to efficient equipment.

When you upgrade your HVAC system with high-efficiency equipment, you can benefit from a combination of federal and state rebate programs. The Inflation Reduction Act has introduced several federal heat pump rebates, offering substantial savings on your new installation. Additionally, Energy Star-certified equipment often qualifies for both federal and state-level rebates.

On the local level, utility providers such as the Salt River Project and Tucson Electric Power offer their own programs. These include the SRP AC rebate and TEP’s energy efficiency programs, which reward homeowners who choose high-efficiency HVAC systems. Rebates typically range from a few hundred dollars to over $1,000, depending on the system type and efficiency rating.

Looking ahead, HVAC rebates in 2025 are expected to expand, making it a great time to invest in your home’s heating and cooling system.

If you’re looking for guidance on how to apply for HEEHRA rebates, the process is simple but requires careful attention to eligibility requirements and necessary documentation. First, ensure the HVAC system you choose meets efficiency standards and is installed by a licensed contractor.

After purchase and installation, gather important documents such as proof of purchase, the AHRI certificate, and contractor verification to confirm your system qualifies. Working with a licensed HVAC professional can simplify the application process and help you ensure you meet the requirements for relevant rebates and incentives.

Rebates and incentives don’t just reduce what you pay upfront for your new HVAC system. They contribute to long-term energy savings, helping you reduce utility bills in the long run. By selecting a high-efficiency unit that qualifies for state and federal rebates, you can reduce the cost of your initial investment while trimming your monthly bills.

The key is to choose the system that balances performance and rebate eligibility. At Advantage Air Mechanical, we help you identify eligible systems and navigate the rebate programs that will provide you with the best return on your investment.