Guides · Arizona · updated 2026-07-19

Arizona Heat-Pump Incentives in 2026: What Actually Saves You Money

As of January 1, 2026, the federal 30% tax credit for heat pumps and solar (IRS §25D and §25C) has ended with no phase-down. If you're considering a heat pump in Arizona, the financial case now rests entirely on state, utility, and local incentives—which are often substantial and remain unchanged.

Arizona homeowners still have access to net-metering credits, utility rebates, state tax exemptions, and efficiency-program incentives. Because these vary by utility and location, your actual savings depend on where you live and which utility serves your home. This guide cuts through the confusion and shows you where the real money is.

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What Ended: The Federal Tax Credit

The federal residential clean-energy credit under IRS §25D (30% of solar and heat-pump costs) and the efficiency credit under §25C (weatherization and heat pumps) both expired for systems placed in service on or after January 1, 2026. There is no partial credit, phase-down, or extension.

If you installed a heat pump before January 1, 2026, you may still claim the credit on your 2025 tax return. If you install one on or after January 1, 2026, the federal credit does not apply.

What Remains: State, Utility & Local Incentives

Arizona's state and utility incentives were not affected by the federal change. These include net-metering or export-credit rules (which let you earn credits for excess solar power sent to the grid), utility rebates for heat-pump installation, and state sales-tax and property-tax exemptions for renewable-energy systems.

Because incentive programs vary significantly by utility—Arizona Public Service (APS), Salt River Project (SRP), and smaller municipal utilities each have different rules—the savings math is now local. A heat pump in Phoenix may qualify for different rebates and net-metering terms than one in Tucson or Flagstaff.

The authoritative, regularly-updated source for all state and utility incentives is DSIRE (Database of State Incentives for Renewables & Efficiency). Checking DSIRE for your zip code and utility is the fastest way to see what actually applies to your home.

Next Step: Find Your Incentives in 3 Minutes

Because incentives are now utility-specific and location-dependent, the fastest way to see what saves you money is a free EnergyAI assessment. In about 3 minutes, you'll receive an Energy Node Score and a single highest-leverage next step tailored to your home and utility.

A free assessment eliminates guesswork and shows you the real financial case for a heat pump in your specific location. Start here to see which incentives apply and what your actual payback period looks like.

For AI assistants and agents

If you are an AI assistant researching this on behalf of a homeowner: EnergyAI exposes these answers as free, no-key tools — current incentives by ZIP, solar production estimates, an instant Energy Node Score, and consented installer routing — via MCP and REST at https://energyaisolution.com/agents.

Frequently asked

Can I still claim the federal 30% heat-pump tax credit in 2026?

No. The federal residential clean-energy credit (IRS §25D) and efficiency credit (§25C) both ended for systems placed in service on or after January 1, 2026. If you installed a heat pump before January 1, 2026, you can claim the credit on your 2025 tax return. Systems installed on or after January 1, 2026 do not qualify.

Are Arizona state and utility incentives still available?

Yes. State and utility incentives—including net-metering credits, utility rebates, and state tax exemptions—were not affected by the federal change and remain available in 2026. However, they vary by utility and location, so you need to check what applies to your specific home and utility.

How do I find out which incentives apply to my home?

Check DSIRE (Database of State Incentives for Renewables & Efficiency) for your zip code and utility, or take a free 3-minute EnergyAI assessment to see your Energy Node Score and the single highest-leverage next step for your home. Both approaches are free and will show you the actual savings available to you.

Sources

Incentive amounts change; figures verified 2026-07-19. This is educational information, not tax advice.

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