Tucson Electric Power (TEP) has a live rebate for heat pumps, but you only get it by hiring a participating contractor. It comes off the price at install, so there is no mail-in form. The federal tax credit is gone for 2026 installs. Climate Pros Tucson matches you with licensed, independent pros, and you can ask any of them whether they take part in TEP’s program.
What does TEP’s Efficient Home Program pay?
TEP’s Efficient Home Program is an instant rebate taken off the price through a participating Efficient Home contractor, which TEP calls a Trade Ally. As listed by TEP in October 2026:
| Upgrade | Listed rebate |
|---|---|
| Heat pump quality installation | up to $720 |
| AC quality installation | up to $600 |
| Duct sealing | up to $300, varies by leakage reduced |
| Mini split heat pump or AC | up to $100 per ton |
| AC tune-up | up to $160 total |
The tune-up total splits into $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.
What are the conditions?
The rebate applies when you retire an older working unit or replace a non-working AC. You must use a participating contractor, and TEP shows no end date on the program page. TEP runs it with Franklin Energy. Questions go to 866-473-8761 or TEPEfficientHome@FranklinEnergy.com.
Ask the contractor three things before you sign: are you a TEP Efficient Home contractor, does my specific project qualify, and where does the rebate show on the written quote.
Does the rebate fit a package unit or a mini split?
TEP lists mini splits and heat pumps separately from AC. If your house has a roof package unit, ask whether a package heat pump counts as a “heat pump quality installation.” The program page doesn’t say, and the contractor or TEP can answer it. See the package unit comparison for how those systems differ.
What about Trico customers?
TEP serves most of the Tucson metro. Trico Electric Cooperative serves northwest Tucson and Marana south to Green Valley and Sahuarita. If your bill says Trico, TEP’s program is not yours. Check with Trico directly about any program of its own.
What happened to the federal credit?
The federal 25C credit ended. The IRS covers property placed in service before December 31, 2025, so a heat pump installed in 2026 does not qualify. The 25D credit, which included geothermal heat pumps, also ended after 2025. Arizona has no state tax credit for HVAC equipment. Read the full rundown in the federal 25C explainer.
Is there other help for lower-income households?
Arizona’s HEAR rebates through Efficiency Arizona are still live but narrower. They serve low- to moderate-income households. Under DOE guidance effective September 1, 2026, the program no longer pays to replace gas appliances with electric ones. Heat pump rebates apply to replacing existing electric equipment or heat pumps. Insulation or air-sealing standards may be required alongside. Check the program for current rules and amounts.
Why a heat pump fits the Tucson basin
Tucson sees about 2.6 cooling degree days for every heating degree day, and fewer than 12 freezing nights a year at the airport. A heat pump does the cooling you need anyway and handles the mild winters. See the heat pump service page and the heat pump vs AC guide. The Tucson HVAC hub lists the areas we cover.
When to call us
When you want a licensed pro to quote a heat pump and confirm the TEP rebate, call (520) 353-2520 and we’ll match you with a licensed local pro. Check any contractor’s license at roc.az.gov.