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 ductless mini-split 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 ductless mini-split heat pump satisfies. Because it is a point-of-sale style rebate routed through the state rather than a utility, it can apply where no utility program 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 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 first-come; some states have already reserved or exhausted their allocations. As of mid-2026 Efficiency Arizona is open and accepting applications but undersubscribed, which can change quickly. Confirm current funding status on resilient.az.gov, and note 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.