If you have to upgrade your HVAC system in 2025, you should know about what money you have available to you. There are several rebates and tax credits available to help you save money while enhancing your home’s energy efficiency.
1. Efficiency Arizona Programs
Home Electrification and Appliance Rebates (HEAR)
This program offers point-of-sale rebates for qualified electrification projects, including energy-efficient HVAC installations. Rebates are particularly generous for low- and moderate-income households, with amounts varying based on income and specific upgrades.
Home Efficiency Rebates (HER)
HER provides performance-based rebates for home improvements that achieve at least 15% energy savings.
- Save 20-34% on energy? Get up to $2,000.
- Save 35% or more? You could qualify for up to $4,000.
Low-income households may qualify for even higher rebates.
2. Utility Company Rebates
Salt River Project (SRP)
SRP’s Cool Cash™ Rebate program offers up to $1,125 for installing high-efficiency air conditioning systems. The amount depends on the system’s Seasonal Energy Efficiency Ratio (SEER) and type.
Arizona Public Service (APS)
APS provides rebates for a range of energy-efficient upgrades, including HVAC systems. For example, you can receive $200 for air conditioner upgrades when you meet efficiency standards.
3. Federal Tax Credits
Energy Efficient Home Improvement Credit (25C)
The federal government offers a tax credit for energy-efficient HVAC installations. You can claim up to $600 for eligible systems, including installation costs. This credit helps offset your investment in a more sustainable home.
Eligibility and Application Tips
Income Requirements
Programs like HEAR and HER depend on income levels relative to the area's median income. Households earning below 80% of the median may qualify for higher rebates.
Application Process
To access rebates and tax credits, you’ll need documentation such as:
- Proof of income
- Detailed contractor invoices
- Energy efficiency assessments
Tax professionals can help ensure all paperwork is in order. We are always here to help you get everything you deserve as well.
Why Upgrade Your HVAC in 2025?
Upgrading your HVAC system isn’t a small decision. We all know we will spend a lot less just fixing the one we got. But for those situations where the smart money is to make the change, let’s not leave any money on the table.
More efficient equipment will lower your monthly carrying costs, shrink your carbon footprint, and keep your home comfortable and safe with all the latest technology, but there is a meaningful upfront cost to convert from gas.
If you want to see what your best choice is—to fix it or to replace it—have Fix It Frankie come out to assess your equipment, home, and comfort needs.
If we can fix it and keep ‘er humming for a bunch more years, we’ll do that. If it’s in pretty rough shape and now's the time to make the switch, we can lay out what that looks like, too. Just don’t be gaslighted into believing you have to replace a 10-15 year old system prematurely. I promise that’s more often nonsense than reality.
(Note: Rebates and programs are subject to change. Verify details with the program administrators for the most up-to-date information.)
