June 2025: Arizona Contractor Meeting Recap

The Building Performance Association recently hosted an informational session for Arizona energy efficiency contractors, highlighting critical updates across federal initiatives. This meeting was the second in a series of five that BPA is hosting over the summary for Arizona contractors.

While details continue to evolve, here are key themes we covered:

Tax Bill – Tax cuts proposed in the “One Big Beautiful Bill” could have major implications for several key residential energy initiatives. Credits including 25C, 25D, and 45L have been targeted for repeal at the end of 2025. The bill is currently moving from the House to the Senate, and BPA will provide updates as developments unfold.

Annual Appropriations – The newly released federal budget proposal for FY26 included significant cuts to core energy efficiency programs, including Weatherization Assistance Programs, LIHEAP, and State Energy Programs. The bill also threatens to rescind any remaining funding from the Infrastructure Investment and Jobs Act that has not been obligated, jeopardizing hundreds of millions in potential resources. We explored how these proposed changes could affect Arizona’s energy efficiency landscape and emphasized the importance of ongoing advocacy.

Home Energy Rebates – Arizona has officially launched its Home Electrification and Appliance Rebate (HEAR) program, and the state’s funding remains secure—neither the tax bill nor the annual appropriations bill has proposed clawbacks. The Governor’s Office of Resiliency has expanded the program to include all eligible appliances. We discussed ongoing contractor concerns about administrative complexity and are continuing to engage with the state to help ensure the program is practical and accessible.

ENERGY STAR – There have been recent proposals to eliminate or privatize the ENERGY STAR program, raising concerns across the energy efficiency community. ENERGY STAR plays a central role in setting standards for utility programs and qualifying products for federal tax credits. During the meeting, we explained the challenges that the Administration would face with dismantling or relocating the program, which would require significant legislative action.

BPA will continue to provide updates as we get them. Please join one of our future meetings in this series if interested in participating in the discussion.