The short answer
Yes — Arizona Public Service (APS) ended its residential HVAC rebate program effective January 1, 2026. If you're an APS customer, there's no APS AC rebate to claim in 2026. Be wary of any company that promises one. Federal incentives still apply.
What changed with the APS rebate?
APS previously offered rebates to help residential customers upgrade to high-efficiency cooling equipment. That residential HVAC rebate program ended on January 1, 2026. For 2026, there is no APS air-conditioning rebate for homeowners to claim.
We're telling you this plainly because it's exactly the kind of detail a high-pressure sales pitch glosses over. Honesty about what's actually available is part of how RM III does business.
Watch for false rebate promises
If a contractor tells you they'll get you an 'APS rebate' in 2026, ask them to show you the current program. There isn't one. A promised rebate that doesn't exist is a red flag.
Am I an APS customer or an SRP customer?
Arizona's two big Valley utilities are APS and SRP, and which one serves you determines what's available. Check the logo on your electric bill. SRP electric customers still have the Cool Cash rebate; APS customers do not have a residential HVAC rebate in 2026.
It's possible for neighbors a few streets apart to be on different utilities, so don't assume — verify on your bill.
What incentives can APS customers still use?
Even without an APS rebate, real money is still on the table:
- The federal HEAR / Efficiency Arizona program — up to $8,000 toward a qualifying heat pump for income-qualified households (funded through September 30, 2031)
- Manufacturer and seasonal promotions where available (note: the federal 25C tax credit ended for installs after December 31, 2025)
- Financing options (including $0-down on approved credit) to spread the cost
How do you make the most of what's left?
Start by confirming your utility and whether your household income qualifies for the federal HEAR program — that's where the largest dollars are for many APS customers. (Don't count on the federal 25C tax credit: it ended for installs after December 31, 2025.)
RM III will tell you honestly which programs you qualify for and help you choose equipment that maximizes the incentives you can actually claim — not the ones a brochure wishes existed.
No. APS ended its residential HVAC rebate effective January 1, 2026 — and the federal 25C tax credit ended for installs after December 31, 2025. APS customers should look at the income-qualified federal HEAR / Efficiency Arizona program, manufacturer promotions, and financing. If a company promises an APS rebate or a 2026 25C credit, ask them to prove the program exists.
No. The change is specific to APS. SRP electric customers still have the Cool Cash rebate (up to $1,125 plus a per-ton amount for 15.2 SEER2+ systems installed by April 30, 2027). See our SRP Cool Cash guide.
Terms in this guide
- APS HVAC rebate (ended)
- Arizona Public Service ended its residential HVAC rebate program effective January 1, 2026. If you're an APS customer, there is no APS AC rebate to claim in 2026 — be wary of any company that promises one. Federal incentives still apply.
- SRP Cool Cash
- Salt River Project's rebate for SRP electric customers who install qualifying high-efficiency equipment (15.2 SEER2 or higher). It pays up to $1,125, with an additional variable amount based on system tonnage, for installs completed by April 30, 2027. RM III files the paperwork for you.
- 25C tax credit
- The federal Energy Efficient Home Improvement Credit — ENDED for equipment placed in service after December 31, 2025 (July 2025 federal tax law). Systems installed by that date could claim 30% of cost, up to $600 for a high-efficiency central AC or $2,000 for a heat pump, on the 2025 return. Confirm details with your tax professional.
- HEAR / Efficiency Arizona
- The federal Home Electrification and Appliance Rebates program, administered in Arizona as 'Efficiency Arizona.' It offers income-qualified households up to $8,000 toward a qualifying heat pump, with funding available through September 30, 2031.
- Heat pump
- An all-electric system that both cools and heats by moving heat rather than burning fuel. A heat pump cools exactly like an AC in summer and reverses to provide efficient heat in Phoenix's mild winters — one system instead of a separate AC and furnace.