Heat Pump Pricing Index

Arkansas Heat Pump Rebates

Stackable incentives available to Arkansas homeowners installing a qualifying heat pump in 2026.

Max stackable total:$5,500(income-qualified)

What's available in Arkansas

Arkansas is a utility-driven rebate landscape with no active statewide program. SWEPCO offers the most generous heat pump incentive in the northwest; Entergy Arkansas focuses on heat pump water heaters via in-store instant discounts. Rural cooperatives (Intercounty, North Arkansas Electric) layer on smaller rebates and low-interest loans. The IRA HEAR/HEEHRA program through Arkansas DEQ Energy Office had not launched as of early 2026.

Federal §25C tax credit
$2,000
30% of project, capped
Federal HEEHRA rebate
$8,000
Income-qualified only (≤80% AMI)
Arkansas non-income-qualified
$3,500
2 programs
Arkansas income-qualified
$0
0 programs

Federal incentives

§25C tax credit: 30% of project cost up to $2,000, claimed via IRS Form 5695 for the tax year the system was installed. Locked in through 2032 by the Inflation Reduction Act.

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Arkansas is currently finalizing program rules.

Arkansas rebate programs

SWEPCO HVAC Incentive (Heat Pump)

$3,000
rebate

Up to $3,000 per service address for qualifying high-efficiency heat pumps in SWEPCO Arkansas territory. Must use an approved HVAC contractor; amount varies by efficiency tier.

Source: swepco.com

Entergy Arkansas Heat Pump Water Heater Rebate

$500
rebate

Up to $500 instant point-of-purchase discount on qualifying ENERGY STAR heat pump water heaters at participating retailers for Entergy Arkansas residential customers. Funds limited.

Source: entergyarkansas.com

6 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

Estimate your net cost

Used to determine HEEHRA eligibility (under 80% area median income).

Average installed cost
$12,500
Incentives offset 43% of the install−$5,400
  • Federal §25C tax credit−$2,000
  • Oncor Take A Look program−$1,200
  • CenterPoint Energy SCORE−$800
  • Austin Energy Heat Pump Rebate−$1,400
Estimated out-of-pocket$7,100

Estimate only. Tax credits require sufficient federal tax liability. Rebate stacking rules vary — confirm with your installer and utility before signing.

How to claim each rebate

  1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
  2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list.
  3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates and the federal §25C credit.
  4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year.
  5. Claim federal credit at tax time using Form 5695 for the year you placed the system in service.

FAQ

Most Arkansas households can stack the federal $2,000 tax credit with up to $3,500 in state and utility rebates. Income-qualified households (under 80% AMI) may also access the $8,000 HEEHRA rebate plus an additional $0 in income-qualified state programs.