A new high-efficiency air conditioner is one of the bigger purchases a Mesa homeowner makes, but very few people realize how much of that cost can come back to them. Between utility rebates from APS and SRP and the federal energy efficiency tax credit, the right system in 2026 can be meaningfully cheaper than the sticker price. Here is how each program works and how to make sure your new system qualifies.
One important rule before you start
Rebate and tax credit programs change every year, and the exact dollar amounts, efficiency tiers, and deadlines are set by APS, SRP, and the IRS, not by us. Always confirm current amounts on the official program pages and talk to a tax professional before counting on a credit. This guide explains how the programs work so you know what to look for.
The three places savings come from
For most Mesa homeowners, savings on a new system come from three separate buckets that can often be combined:
- Utility rebates from your electric provider (APS or SRP) for installing qualifying high-efficiency equipment.
- Federal tax credits for energy-efficient home improvements, claimed when you file your taxes.
- Manufacturer and seasonal promotions that change throughout the year and stack on top of the above.
APS rebates
If Arizona Public Service is your electric utility, APS runs energy efficiency programs that have historically included rebates for qualifying high-efficiency AC systems and smart thermostats. To qualify, your new equipment usually has to meet a minimum efficiency tier, and the work typically must be done by a participating licensed contractor.
Because the available rebates and dollar amounts are updated each year, check the current offers on the official APS rebates page, or ask your installer which APS programs your chosen system qualifies for.
SRP rebates
If Salt River Project powers your home, SRP runs its own set of residential rebate programs that have included incentives for high-efficiency cooling equipment and smart thermostats. As with APS, eligibility generally depends on the efficiency rating of the equipment and on using a qualified contractor for the installation.
Confirm the current SRP rebate amounts and requirements on the official SRP rebates site. Knowing your provider matters: your home is served by either APS or SRP, not both, so check the program that applies to your address.
The federal energy efficiency tax credit
Separate from any utility rebate, the federal Energy Efficient Home Improvement Credit rewards homeowners for installing qualifying high-efficiency equipment. As a general structure, it has covered 30 percent of the cost of qualifying equipment and installation, up to an annual limit, with heat pumps eligible for a higher annual cap than a standard central AC.
The specific dollar caps and efficiency requirements are set by the IRS and can change, so confirm the current limits for 2026 with the IRS or a tax professional before you buy. A few things that stay consistent:
- The equipment must meet the required efficiency tier, so ask your installer to confirm the model qualifies before purchase.
- A high-efficiency heat pump generally carries a larger credit than a straight AC, which is worth weighing if you are replacing the system anyway.
- You claim the credit when you file your federal taxes, using IRS Form 5695, not at the time of purchase.
How to actually claim your savings
The process is straightforward when you keep good paperwork:
- Choose qualifying equipment. Tell your installer you want a system that meets the efficiency tiers for both your utility rebate and the federal credit.
- Keep every document. Save the itemized invoice, the AHRI certificate, and the manufacturer certification statement for your system.
- Submit the utility rebate. Many APS and SRP rebates are filed within a set window after installation. Your contractor can often submit on your behalf or tell you exactly how.
- Claim the tax credit at tax time. Give your records to your tax preparer, or file Form 5695 yourself.
Rebates favor replacement, not repair
Nearly all of these incentives apply to installing new high-efficiency equipment, not to repairing an old unit. If your system is aging, factor potential rebates into the repair-versus- replace decision. They can tip the math toward a new system that also cuts your monthly bill.
Putting it together
If you are deciding whether to keep paying for fixes or invest in a new system, run the numbers with rebates in mind. Our AC replacement cost calculator gives you an installed price range to start from, our guide on how much AC repair costs in Mesa walks through the repair-versus-replace math, and when to replace your AC in Arizona covers the signs that it is time. When you are ready, our team can size a system correctly and point you to the programs it qualifies for during a free in-home estimate.
Free in-home estimate
We will help you choose a system that qualifies
We size your new AC right, install it properly, and tell you which APS, SRP, and federal programs your system is eligible for. No pressure, no commission games.
Bottom line
Between APS or SRP rebates, the federal tax credit, and seasonal promotions, a new high-efficiency AC in 2026 can cost less than the price on the proposal. The catch is that programs change and the fine print matters, so confirm current amounts with APS, SRP, and a tax professional, and work with an installer who knows how to get your system to qualify. We are happy to walk you through it.
