Short answer: The federal Section 25C Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps, $600 for central AC) was terminated for equipment installed after December 31, 2025, under the One Big Beautiful Bill Act. For 2026 Las Vegas HVAC installations, NV Energy PowerShift rebates of $500-$2,000 are the primary financial incentive. These are utility rebates, not tax credits — you receive the money faster and do not need to wait for tax filing. Call (702) 567-0707 for a quote that includes all available 2026 rebates.
Key Takeaways
- The federal 25C tax credit is no longer available for 2026: The credit was terminated under the One Big Beautiful Bill Act for equipment installed after December 31, 2025. If you installed qualifying equipment in 2025, you can still claim the credit on your 2025 tax return.
- NV Energy PowerShift rebates are the primary 2026 incentive: NV Energy offers $500-$2,000 for qualifying high-efficiency HVAC installations, with higher rebates for heat pumps than AC-only systems.
- Heat pumps qualify for the highest rebates: NV Energy PowerShift offers up to $2,000 for qualifying heat pump installations versus lower rebates for AC-only systems. This financial advantage makes heat pumps increasingly compelling for Las Vegas.
- Rebates go directly to your bill or by check: Unlike tax credits that reduce your tax liability at filing, NV Energy rebates are issued as bill credits or checks — typically processed within 4-8 weeks of application approval.
- Manufacturer rebates can stack: Individual brand promotions from Lennox, Carrier, Trane, and other manufacturers can be combined with NV Energy rebates for additional savings.
What Happened to the Federal 25C Tax Credit
The Section 25C Energy Efficient Home Improvement Credit was originally part of the Inflation Reduction Act of 2022. It offered homeowners up to $2,000 per year in tax credits for qualifying heat pump installations and up to $600 for qualifying central air conditioner installations. The credit could be claimed annually — meaning a homeowner could install a heat pump in one year and a high-efficiency water heater in another year, claiming credits each time.
The One Big Beautiful Bill Act, signed into law in 2025, terminated the 25C credit for equipment installed after December 31, 2025. This means:
- Equipment installed in 2025 or earlier: You can still claim the 25C credit on your tax return for the year the equipment was installed. The deadline to file a 2025 tax return claiming the credit is April 15, 2026 (or October 15, 2026 with an extension).
- Equipment installed in 2026 or later: The 25C credit is not available. No federal HVAC tax credits exist for residential installations in 2026.
This is a significant change for Las Vegas homeowners. In 2025, a qualifying heat pump installation could receive up to $2,000 in federal tax credits plus NV Energy rebates. In 2026, only the NV Energy rebates remain. The loss of the federal credit increases the effective cost of a new HVAC system by $600-$2,000 compared to 2025 pricing.
NV Energy PowerShift Rebates (2026)
NV Energy's PowerShift program is the primary financial incentive for high-efficiency HVAC installations in 2026. The program offers rebates for equipment that exceeds federal minimum efficiency standards.
Qualifying Equipment and Rebate Amounts
| Equipment Type | Efficiency Requirement | Estimated Rebate Range |
|---|---|---|
| Heat pump (variable-speed) | 18.0+ SEER2 | $1,000 - $2,000 |
| Heat pump (two-stage) | 16.0+ SEER2 | $500 - $1,000 |
| Central AC (variable-speed) | 18.0+ SEER2 | $500 - $1,000 |
| Central AC (two-stage) | 16.0+ SEER2 | $300 - $500 |
| Smart thermostat | ENERGY STAR certified | $50 - $100 |
| Duct sealing | Professional testing required | $200 - $400 |
Important: NV Energy rebate amounts and qualifying criteria are subject to change. Verify current rebate amounts at NV Energy's heating and cooling rebate page before purchasing. Rebate funding is allocated annually and programs can be modified or suspended when funding is exhausted.
How to Claim NV Energy Rebates
- Verify eligibility before purchase: Check current rebate amounts and qualifying equipment on the NV Energy website or call NV Energy's PowerShift hotline.
- Purchase and install qualifying equipment: Work with a licensed HVAC contractor. The installation must meet local building codes and the equipment must meet the program's efficiency requirements.
- Submit rebate application: Complete the rebate application form (available on the NV Energy website) within 90 days of installation. Required documentation includes the installation invoice, equipment model and serial numbers, and the contractor's information.
- Receive rebate: Approved rebates are typically processed within 4-8 weeks. Payment is issued as a bill credit or check, depending on your preference and the rebate amount.
Your HVAC contractor should be familiar with the NV Energy rebate process and can often assist with the application. At The Cooling Company, we include rebate processing assistance as part of our installation service — we help identify qualifying rebates, provide the required documentation, and assist with the application submission.
Qualifying Brands and Models for NV Energy Rebates
Most premium-tier systems from major brands qualify for NV Energy PowerShift rebates. Here are the models most commonly installed by The Cooling Company that meet the efficiency requirements:
Heat Pumps (Qualifying for Highest Rebates)
- Lennox: SL28XCV (28.0 SEER2), XC25 (26.0 SEER2), XC21 (21.0 SEER2), EL18XCV (18.0 SEER2)
- Carrier: Infinity 24 (24.0 SEER2), Infinity 20 (20.0 SEER2), Performance 17 (17.0 SEER2)
- Trane: XV20i (21.5 SEER2), XV18 (18.0 SEER2), XR17 (17.0 SEER2)
- Rheem: Prestige RA20 (20.0 SEER2), Classic Plus RA17 (17.0 SEER2)
Central Air Conditioners
- Lennox: SL28XCV (28.0 SEER2), XC25 (26.0 SEER2), XC21 (21.0 SEER2), EL18XCV (18.0 SEER2)
- Carrier: Infinity 26 (26.0 SEER2), Infinity 24 (24.0 SEER2), Infinity 21 (21.0 SEER2)
- Trane: XV20i (22.0 SEER2), XV18 (18.0 SEER2)
- Rheem: Prestige RA20 (20.0 SEER2)
- Goodman: GSXC18 (18.0 SEER2)
Manufacturer Rebates and Promotions
Individual HVAC manufacturers offer seasonal promotions that can stack with NV Energy rebates. These are not tax credits — they are direct rebates or financing offers from the manufacturer.
Lennox: Offers seasonal rebates of $200-$1,200 on qualifying system purchases, plus promotional financing through Wells Fargo (0% for 60-120 months on qualifying purchases through Premier Dealers). Lennox promotions typically run February-May (spring) and August-November (fall).
Carrier: Cool Cash rebates of $100-$1,000 on qualifying Infinity and Performance systems, plus promotional financing through Wells Fargo. Carrier promotions run throughout the year with peak offers in spring and fall.
Trane: Offers $100-$800 in rebates on qualifying systems through participating dealers. Trane financing through TD Bank includes promotional 0% options on qualifying purchases.
Rheem: Seasonal rebates of $100-$500 on qualifying installations. Rheem promotions are less frequent than Lennox and Carrier but offer competitive terms when active.
To maximize savings, time your purchase to coincide with manufacturer promotion periods and stack the manufacturer rebate with NV Energy's PowerShift rebate. The combination can reduce your net cost by $1,000-$3,000 on a qualifying high-efficiency system.
Stacking Incentives: Maximum 2026 Savings
Here is the maximum realistic savings stack for a qualifying heat pump installation in Las Vegas in 2026:
| Incentive | Amount | Type |
|---|---|---|
| NV Energy PowerShift rebate | $500 - $2,000 | Utility rebate (bill credit or check) |
| Manufacturer seasonal rebate | $200 - $1,200 | Manufacturer rebate |
| Promotional financing (0%) | Varies | Deferred interest savings |
| Total potential savings | $700 - $3,200 |
A $700-$3,200 savings stack is meaningful against a system installed price of $7,000-$15,000. Combined with the lower annual operating costs of a high-efficiency system ($300-$600/year savings over a base model), the total financial case for premium efficiency remains strong even without the federal 25C credit.
Frequently Asked Questions
Can I still claim the 25C tax credit if I bought my HVAC system in 2025?
Yes. If qualifying equipment was installed in 2025, you can claim the 25C credit on your 2025 federal tax return. The credit was available for equipment installed through December 31, 2025. File your 2025 return by April 15, 2026 (or October 15, 2026 with an extension) and include IRS Form 5695 (Residential Energy Credits). You will need the manufacturer's certification statement confirming the equipment qualifies under Section 25C.
Will the federal HVAC tax credit come back?
There is no current legislation to reinstate the 25C credit. The termination was part of a broader bill that repealed several Inflation Reduction Act provisions. Future legislation could potentially restore similar credits, but there is no pending bill or timeline as of March 2026. Make purchase decisions based on currently available incentives (NV Energy rebates and manufacturer promotions) rather than speculative future credits.
Are NV Energy rebates taxable income?
Generally, no. Utility rebates for energy efficiency improvements are typically treated as purchase price reductions rather than taxable income under IRS guidance. However, tax situations vary — consult your tax professional for advice specific to your circumstances. The key distinction: a utility rebate that reduces your purchase price is not taxable, while a utility rebate paid as a cash incentive unrelated to a specific purchase may be taxable. NV Energy PowerShift rebates are tied to specific equipment purchases and are generally not considered taxable income.
Do I need to use a specific contractor to qualify for NV Energy rebates?
NV Energy does not require a specific contractor, but the installation must meet all applicable building codes and the equipment must meet the program's efficiency requirements. Working with an established HVAC contractor who is familiar with the rebate program reduces the risk of application errors that can delay or prevent rebate payment. The Cooling Company includes rebate assistance as part of every qualifying installation.
What if NV Energy runs out of rebate funding mid-year?
NV Energy allocates rebate funding annually, and programs can be modified or suspended when funding is exhausted. This has happened in past years with high demand. If rebate availability is a factor in your purchase decision, do not delay — early-year installations have the best chance of full rebate availability. Check current program status on the NV Energy website before scheduling your installation.
Plan Your 2026 HVAC Purchase
Even without the federal 25C tax credit, significant savings are available for Las Vegas homeowners purchasing high-efficiency HVAC systems in 2026. NV Energy PowerShift rebates ($500-$2,000), manufacturer promotions ($200-$1,200), and annual energy savings ($300-$600/year) create a strong financial case for investing in efficiency.
Call (702) 567-0707 or request a free quote for a personalized savings analysis that includes all available 2026 rebates and incentives for your specific installation.