APS & SRP AC Rebates in 2026 — What's Actually Left
The federal tax credit is gone. APS cut its rebate. SRP's Cool Cash is still paying up to $225 a ton. Here's the 2026 picture for Valley homeowners replacing a system.
Every year the rebate landscape shifts, and every year someone gets quoted a "rebate" that no longer exists. Here's where things stand for 2026. We handle the paperwork on every qualifying install, but you should know what's real going in.
Federal 25C tax credit — expired
The Energy Efficient Home Improvement Credit (25C) — the one that gave up to $2,000 back on a qualifying heat pump — ended for equipment placed in service after December 31, 2025. If a contractor is still advertising a "federal tax credit" on a 2026 install, ask them to show you the code section. There isn't one. Source: IRS guidance on P.L. 119-21.
APS — residential AC rebate discontinued
APS ended its residential AC and heat pump equipment rebate as of January 1, 2026 (Arizona Corporation Commission Decision No. 81584). What's left from APS is Cool Rewards — a smart thermostat program that pays a small credit for letting APS adjust your thermostat during peak events. It doesn't help with equipment cost.
If you're an APS customer (most of Ahwatukee, Scottsdale, and parts of Phoenix): plan on no utility rebate for a replacement. Manufacturer promotions and financing are the levers.
SRP — Cool Cash is still running
SRP customers (most of Tempe, Mesa, Chandler, Gilbert, and much of Phoenix) still have Cool Cash, a per-ton rebate on qualifying high-efficiency systems:
- $75 per ton — single-stage
- $150 per ton — two-stage / multi-stage
- $225 per ton — variable-capacity, and inverter-driven mini-splits
On a 4-ton variable-speed heat pump, that's $900 back. Requirements, as of this writing:
- AHRI-matched system rated 15.2 SEER2 or higher
- Installed by a participating contractor (we are)
- Manual J load calculation on file — required for single-stage systems, and we do one on every install regardless
- Application submitted within 6 months of install; program covers systems installed before April 30, 2027
Amounts and rules change. We confirm the current program the week we quote. Source: SRP Cool Cash.
Manufacturer rebates
American Standard, Bryant, and others run seasonal promotions — usually spring and fall — on their higher-tier systems, sometimes paired with financing offers. These change monthly. We apply whatever's active at the time of your quote and show it as a line item.
What this means for your decision
- SRP customer: high-efficiency variable-speed makes more sense than it did — the rebate scales with the efficiency tier.
- APS customer: the decision is pure math on bill savings vs. up-front cost. Variable-speed still wins over 10 years for most homes, but the payback is longer without the rebate.
- Anyone: don't let a rebate drive the sizing. A right-sized single-stage that fits the budget beats an oversized variable-speed installed to chase $900.
Questions people ask
Is there still a federal tax credit for heat pumps in 2026?+
No. The 25C credit ended for equipment placed in service after December 31, 2025.
Does APS still offer AC rebates?+
Not for equipment. APS discontinued its residential AC/heat pump rebate effective January 1, 2026. Cool Rewards (smart thermostat) is the remaining program.
How much is the SRP Cool Cash rebate?+
$75 to $225 per ton depending on compressor type, on 15.2+ SEER2 systems installed by a participating contractor. Rules current as of this post; we verify at quote.
Do you handle the rebate paperwork?+
Yes. We submit SRP and manufacturer rebate paperwork on every qualifying install.