Efficiency Arizona is the state's rollout of the federal Home Electrification and Appliance Rebate (HEAR), funded by the Inflation Reduction Act and administered by the Arizona Governor's Office of Resiliency. For a heat pump it is the largest single incentive available: up to $8,000 toward a qualifying electric heat pump, within a $14,000 cap across all eligible home-electrification measures.
HEAR is income-based rather than efficiency-tier-based. A household at or below 80% of Area Median Income can have up to 100% of the project cost covered; a household between 80% and 150% of AMI can have up to 50% covered. Above 150% of AMI, the household is not eligible for HEAR. The equipment must be an ENERGY STAR-certified electric heat pump, which a quality central air-source system satisfies. Because it is a state-routed rebate rather than a utility program, it can apply where no utility rebate exists — notably APS territory, where the utility discontinued its residential rebates in January 2026.
Two cautions matter for a buyer. First, this is a rebate claimed through the state program, not a federal tax credit on your return — and the federal Section 25C tax credit that used to add up to $2,000 for heat pumps ended for equipment placed in service after December 31, 2025, so HEAR is now the primary federal-funded help. Second, the money is finite and the program's status has been volatile: Efficiency Arizona has posted a public pause notice over federal grant-funding uncertainty, and funding has frozen and unfrozen. As of mid-2026 it has issued thousands of rebates and offers an online eligibility screening tool, but availability can change quickly — do not treat it as unconditionally open.
The practical path: check current program status and run the eligibility screener on resilient.az.gov before counting HEAR into a budget, use a participating contractor where one is required, and remember HEAR can often stack with a utility rebate (SRP Cool Cash, TEP Efficient Home) and the contractor's pricing, subject to the total-cost caps. Buyers above 150% of Area Median Income get nothing from HEAR and should focus on the utility rebate for their territory.