Short answer: Las Vegas commercial property owners can access multiple layers of financial incentives for HVAC upgrades — NV Energy commercial rebates ($50-$200+ per ton for high-efficiency equipment), federal Section 179D tax deductions (up to $5.00 per square foot for qualifying building energy improvements), Inflation Reduction Act tax credits (up to 30% of equipment cost for certain technologies), and utility demand-side management programs. Combined, these incentives can reduce the net cost of a commercial HVAC upgrade by 20-40%. The key is knowing which programs apply to your project, meeting eligibility requirements before purchasing equipment, and filing paperwork correctly. Most programs require pre-approval — installing equipment first and applying later often disqualifies you.
See our tax credits overview and energy savings calculator for residential and commercial programs.
Why Las Vegas commercial HVAC rebates matter more than in other markets
Las Vegas commercial buildings spend more on HVAC per square foot than nearly any other market in the country. With outdoor temperatures exceeding 110°F for 70+ days annually, cooling systems run 10-14 hours per day during peak season, consuming 40-60% of total building electricity. This extreme energy consumption means two things: first, the savings from efficient equipment are proportionally larger here than in milder climates; and second, utility companies and government programs have strong incentive to subsidize efficiency upgrades because they reduce grid strain during the summer peaks that threaten system reliability.
The result is a layered incentive landscape where a single HVAC upgrade project can qualify for NV Energy utility rebates, federal tax deductions, and sometimes state or local programs simultaneously. A 20-ton rooftop unit replacement that costs $45,000 might yield $4,000-$6,000 in NV Energy rebates, $5,000-$15,000 in federal tax benefits, and $8,000-$15,000 in annual energy savings — turning a necessary capital expenditure into an investment with 3-5 year payback.
The challenge is navigating the programs correctly. Each has specific eligibility requirements, application deadlines, equipment specifications, and documentation demands. This guide covers every major program available to Las Vegas commercial property owners as of 2026.
NV Energy commercial HVAC rebates
NV Energy, the primary electric utility serving Las Vegas, operates multiple demand-side management (DSM) programs that provide cash rebates for energy-efficient commercial HVAC equipment. These programs are funded by a small surcharge on all customer bills and are designed to reduce peak grid demand — a critical concern in a market where summer afternoon electricity demand strains generation and transmission capacity.
Prescriptive rebate program
The prescriptive program offers fixed-dollar rebates for specific equipment types that meet minimum efficiency requirements. This is the simplest program — if your equipment meets the specification, you receive the listed rebate amount. Common prescriptive HVAC rebates include:
- Packaged rooftop units (RTUs): Rebates based on efficiency tier and tonnage. High-efficiency RTUs (IEER 14.0+ for units under 5.4 tons, IEER 12.0+ for larger units) typically qualify for $50-$150 per ton. Units with advanced features like variable-speed fans and integrated economizers may qualify for additional incentives.
- Chillers: Rebates for air-cooled and water-cooled chillers meeting efficiency thresholds. Incentives can reach $20-$50 per ton for chillers exceeding ASHRAE 90.1 minimum efficiency by specified margins.
- VRF systems: Variable refrigerant flow systems qualifying for rebates based on IEER performance, typically $50-$100 per ton for systems meeting efficiency thresholds.
- HVAC controls: Programmable thermostats, building automation system upgrades, demand-controlled ventilation (CO2 sensors), and economizer controls may qualify for per-unit or per-point rebates.
- Variable-frequency drives (VFDs): Rebates per horsepower for VFDs added to HVAC fan motors and pumps, typically $50-$100 per HP.
- Energy recovery ventilators (ERVs): Rebates for ERVs that pre-condition outdoor air using exhaust air energy — particularly valuable in Las Vegas where outdoor air conditioning represents a major energy cost.
Custom rebate program
For projects that do not fit prescriptive categories or that involve more complex efficiency measures, NV Energy's custom program calculates rebates based on verified energy savings. The custom program requires:
- Pre-project application and energy analysis
- Engineering documentation of baseline energy use and projected savings
- Post-installation measurement and verification (M&V) to confirm actual savings
- Rebate calculated at a specified rate per verified kWh or kW saved
Custom rebates can exceed prescriptive amounts for projects with significant savings. Building automation system installations, comprehensive HVAC retrofits, and chiller plant optimizations are common custom program applications. The key requirement is documentation — you must demonstrate that the savings are real, measurable, and attributable to the project.
NV Energy application process
Critical requirements for NV Energy rebates:
- Pre-approval is mandatory: Submit your rebate application before purchasing or installing equipment. Applications submitted after installation are typically denied. Allow 2-4 weeks for approval.
- Qualified equipment: Equipment must meet specified efficiency ratings. Have your HVAC contractor confirm that the specific make and model qualifies before ordering.
- Licensed contractor: Installation must be performed by a licensed Nevada mechanical contractor. The Cooling Company holds the required licenses for all NV Energy rebate-eligible installations.
- Post-installation verification: NV Energy may inspect the installation to verify compliance with program requirements. Retain all equipment documentation, invoices, and commissioning reports.
- Filing deadline: Complete and submit final paperwork within 90 days of installation (verify current deadline — this can change by program year).
Current NV Energy program status
NV Energy rebate programs are funded annually and can change year to year. Rebate amounts, qualifying efficiency levels, and available funding are established by the Public Utilities Commission of Nevada (PUCN) through the demand-side management planning process. Programs can run out of funding before year-end if demand is high. Contact NV Energy's commercial energy services team or your HVAC contractor to confirm current program availability and rebate amounts before planning your project.
Federal Section 179D: commercial building energy-efficient deduction
Section 179D of the Internal Revenue Code provides a tax deduction — not a credit — for energy-efficient improvements to commercial buildings. The Inflation Reduction Act of 2022 significantly expanded and extended this provision through 2032.
How Section 179D works
Building owners who install qualifying energy-efficient building systems (HVAC, lighting, building envelope) can deduct up to $5.00 per square foot of building area from their federal taxable income. The deduction amount is based on how much the building's energy cost is reduced compared to the ASHRAE 90.1 reference standard:
- Minimum qualification: Building must achieve 25% energy cost savings over the ASHRAE 90.1-2007 reference standard
- Base deduction: $0.50 per square foot for meeting the minimum threshold
- Increased deduction: Up to $1.00 per square foot for each additional percentage point of energy savings, up to the $5.00 maximum
- Prevailing wage and apprenticeship requirements: Projects meeting prevailing wage requirements qualify for the enhanced deduction amounts (5x multiplier from the base rate)
HVAC-specific qualification
HVAC improvements can qualify for a partial 179D deduction even if the entire building does not meet the full deduction threshold. The HVAC and hot water system can be evaluated as a standalone subsystem — if the HVAC upgrade alone achieves sufficient energy savings relative to the reference building, a partial deduction of up to $1.67 per square foot (one-third of the $5.00 maximum) is available for the HVAC subsystem alone.
For Las Vegas commercial buildings, HVAC upgrades frequently qualify because:
- Cooling loads dominate total building energy use, so HVAC efficiency improvements create proportionally larger savings than in milder climates
- Replacing older equipment (10+ years old, pre-2015 efficiency standards) with current high-efficiency models typically exceeds the 25% savings threshold
- Adding building automation controls to existing equipment often provides enough additional savings to qualify
Who can claim Section 179D
- Building owners: The primary claimant for commercial building deductions
- Tenants: Tenants who pay for leasehold improvements (including HVAC) can claim the deduction for their leased space
- Government buildings: For government-owned buildings (schools, municipal buildings, military facilities), the deduction can be allocated to the designer or engineer responsible for the energy-efficient design
- Tax-exempt organizations: Nonprofits cannot use the deduction directly but can allocate it to the designer under the same provision used for government buildings
Documentation requirements
Claiming the 179D deduction requires a certification from a qualified independent third party (typically a licensed engineer or architect) confirming that the building meets the required energy savings threshold. This certification involves energy modeling using approved software (eQUEST, EnergyPlus, or similar) comparing the building's actual systems to the ASHRAE 90.1 reference. Your HVAC contractor should be able to connect you with qualified certifiers, or your tax professional can arrange certification.
Inflation Reduction Act (IRA) commercial incentives
The IRA, enacted in August 2022, created and expanded several incentive programs relevant to commercial HVAC in Las Vegas.
Investment Tax Credit (ITC) for commercial heat pumps
Commercial heat pump systems — including VRF heat pump systems and commercial heat pump water heaters — may qualify for the Section 48 Investment Tax Credit:
- Base credit: 6% of equipment and installation cost
- Enhanced credit (prevailing wage/apprenticeship): 30% of equipment and installation cost
- Bonus for energy communities: Additional 10% for facilities in designated energy communities
- Available through: December 31, 2032 (subject to phase-down schedule)
For Las Vegas commercial properties, this is most relevant when installing VRF heat pump systems, commercial heat pump water heaters, or geothermal heat pump systems. A $200,000 VRF installation meeting prevailing wage requirements could generate a $60,000 tax credit (30%) — a significant offset against project cost.
Section 179 accelerated depreciation
While not specific to the IRA, Section 179 allows businesses to deduct the full cost of qualifying HVAC equipment in the year of purchase rather than depreciating it over 39 years (the standard depreciation period for commercial building improvements). As of 2026, Section 179 allows deduction of qualifying HVAC equipment up to the annual limit (verify current year limit with your tax professional — historically $1,000,000+). This dramatically improves the first-year cash flow impact of an HVAC upgrade by accelerating the tax benefit.
ENERGY STAR certification and incentives
While ENERGY STAR is primarily a labeling and certification program rather than a direct financial incentive, ENERGY STAR-certified commercial HVAC equipment qualifies for most utility rebate programs and many tax incentives. Specifying ENERGY STAR-certified equipment ensures eligibility for NV Energy rebates and simplifies rebate applications because the equipment's efficiency has been independently verified.
For whole-building certification, the ENERGY STAR Building Certification program recognizes commercial buildings that perform in the top 25% of energy efficiency nationally. Achieving this certification can increase property value, attract environmentally conscious tenants, and qualify for additional incentive programs.
Stacking incentives: maximizing total financial benefit
The most powerful aspect of the current incentive landscape is that most programs can be combined — "stacked" — on the same project. A single commercial HVAC upgrade in Las Vegas can qualify for:
- NV Energy prescriptive or custom rebate (cash rebate, reduces project cost)
- Section 179D deduction (tax deduction, reduces taxable income)
- Section 48 ITC (tax credit for heat pump systems, reduces tax liability directly)
- Section 179 accelerated depreciation (accelerates remaining cost deduction into year one)
Important stacking rules:
- The 179D deduction basis must be reduced by the amount of any utility rebates received (rebates reduce the deductible cost basis)
- The Section 48 ITC and Section 179D cannot generally be applied to the same equipment cost simultaneously — you typically choose the more advantageous option
- Section 179 accelerated depreciation applies to cost basis after ITC reduction (if ITC is taken, the depreciable basis is reduced by 50% of the credit amount)
- State income tax implications vary — consult your tax professional for Nevada-specific guidance (Nevada has no state income tax, but this matters for businesses filing in other states)
Stacking example: 30-ton RTU replacement project
A Las Vegas office building replacing three aging 10-ton RTUs with high-efficiency models:
- Project cost: $120,000 (equipment, installation, controls, commissioning)
- NV Energy rebate: $4,500 (30 tons x $150/ton for high-efficiency RTUs)
- Net cost after rebate: $115,500
- Section 179D deduction: $25,000 (15,000 sq ft building x $1.67/sq ft HVAC subsystem deduction)
- Tax savings from 179D (at 24% bracket): $6,000
- Section 179 accelerated depreciation: Remaining $115,500 deducted in year one instead of over 39 years
- First-year tax savings from accelerated depreciation (at 24% bracket): $27,720
- Total first-year financial benefit: $38,220 (32% of project cost)
- Annual energy savings: $12,000-$18,000
- Effective payback period (after incentives): 4.5-6.8 years
How to apply: step-by-step process
Navigating the application process correctly is the difference between receiving thousands of dollars in incentives and leaving money on the table. Follow this sequence:
- Consult your tax professional: Before any equipment decisions, discuss Section 179D, Section 48 ITC, and Section 179 eligibility with your CPA or tax advisor. They will identify which programs apply to your specific tax situation and business structure.
- Get a professional HVAC assessment: Have your HVAC contractor evaluate your existing equipment, calculate loads, and recommend replacement equipment. The contractor should specify equipment that meets NV Energy rebate efficiency requirements.
- Submit NV Energy rebate pre-application: Before ordering equipment, submit the rebate application through NV Energy's commercial programs. Include equipment specifications, efficiency ratings, and contractor information. Wait for approval before proceeding.
- Confirm equipment qualifications: Verify that specific make and model numbers meet all program requirements. A unit that is one efficiency point below the threshold disqualifies the entire rebate for that piece of equipment.
- Install equipment with licensed contractor: Installation must be performed by a licensed Nevada mechanical contractor to qualify for NV Energy rebates. Retain all invoices, equipment data plates, and commissioning documentation.
- Complete NV Energy post-installation paperwork: Submit final documentation within the required timeframe (typically 90 days). Include invoices, equipment serial numbers, and efficiency verification.
- Obtain 179D certification (if applicable): Engage a qualified energy modeler to perform the required analysis and issue the certification letter needed to claim the deduction on your tax return.
- File tax returns with appropriate deductions and credits: Your tax professional files the 179D deduction, Section 48 ITC (if applicable), and Section 179 depreciation election on your business tax return.
Common mistakes that cost Las Vegas businesses money
After helping hundreds of Las Vegas businesses navigate HVAC rebate programs, these are the mistakes we see most frequently:
- Installing before applying: The single most common and costly mistake. NV Energy requires pre-approval. Installing first and applying later almost always results in denial. The rebate must be approved before equipment is ordered.
- Specifying equipment that barely misses efficiency thresholds: A unit rated at 13.9 IEER when the rebate requires 14.0 IEER receives zero rebate. Always verify exact efficiency ratings against current program requirements before ordering.
- Not claiming Section 179D: Many small business owners and their accountants are unfamiliar with Section 179D. This is a significant deduction that requires specific documentation but is available to any commercial building owner making qualifying improvements. If your CPA has not mentioned 179D, bring it up.
- Missing prevailing wage requirements for IRA enhanced credits: The difference between the base ITC rate (6%) and the enhanced rate (30%) for heat pump systems is meeting prevailing wage and apprenticeship requirements. For a $200,000 project, this is the difference between a $12,000 credit and a $60,000 credit. Verify prevailing wage requirements with your contractor before the project begins.
- Not coordinating timing: Rebate program years, tax filing deadlines, and equipment lead times must all align. A project started in November may not be completed before the current rebate program year ends, potentially requiring re-application under the next year's program (which may have different terms).
- Poor documentation: Keep every invoice, equipment specification sheet, efficiency rating document, commissioning report, and communication with NV Energy. Missing documentation is the second most common reason for rebate denial after timing failures.
The Cooling Company rebate assistance
The Cooling Company provides commercial HVAC services with built-in rebate program support. We help Las Vegas business owners identify qualifying equipment, prepare NV Energy rebate applications, coordinate installation timing with program deadlines, and provide documentation packages that meet all program requirements.
Our process includes pre-project rebate eligibility assessment, equipment specification to maximize rebate qualification, NV Energy application preparation and submission support, post-installation documentation packaging, and coordination with your tax professional for Section 179D and IRA credit documentation.
Call (702) 567-0707 to discuss your commercial HVAC upgrade and available incentives.
Neighborhoods we serve for commercial HVAC rebate projects
We serve commercial properties across Downtown Las Vegas, Summerlin, Spring Valley, Enterprise, Paradise, Henderson, North Las Vegas, Centennial Hills, Silverado Ranch, Green Valley, and the Las Vegas Strip corridor.
Why businesses trust The Cooling Company for rebate-eligible projects
- Serving Las Vegas since 2011
- 55+ years combined experience
- Licensed, EPA-certified technicians
- 100% satisfaction guarantee
- BBB A+ rated
- Lennox Premier Dealer
- NV Energy rebate program expertise
What NV Energy rebates are available for commercial HVAC in Las Vegas?
NV Energy offers prescriptive rebates for high-efficiency commercial HVAC equipment including rooftop units ($50-$150+ per ton), chillers ($20-$50 per ton), VRF systems ($50-$100 per ton), variable-frequency drives ($50-$100 per HP), energy recovery ventilators, and HVAC controls upgrades. Custom rebates are also available for projects with verified energy savings that do not fit prescriptive categories. Rebate amounts and qualifying efficiency levels change annually based on PUCN-approved demand-side management plans. Pre-approval is required before equipment purchase — contact NV Energy commercial programs or your HVAC contractor to confirm current availability and amounts.
What is the Section 179D deduction and how much can it save my business?
Section 179D is a federal tax deduction — up to $5.00 per square foot of building area — for energy-efficient commercial building improvements including HVAC. For HVAC-only upgrades, the deduction can be up to $1.67 per square foot (one-third of the maximum). A 15,000 sq ft Las Vegas building with a qualifying HVAC upgrade could deduct up to $25,000 from taxable income. At a 24% marginal tax rate, this saves $6,000 in federal taxes. The deduction requires energy modeling certification by a qualified professional demonstrating that the upgrade achieves at least 25% energy savings over the ASHRAE 90.1 reference standard. Most modern high-efficiency HVAC replacements in Las Vegas meet this threshold.
Can I get rebates if I already installed my commercial HVAC equipment?
For NV Energy rebates, the answer is almost always no. NV Energy requires pre-approval before equipment purchase and installation. Applications submitted after installation are typically denied. However, federal tax incentives (Section 179D, Section 48 ITC, Section 179 depreciation) can be claimed on your tax return for qualifying equipment installed during the tax year — these do not require pre-approval from the government. If you recently installed commercial HVAC equipment without applying for NV Energy rebates, you missed the utility incentive but should still discuss federal tax benefits with your CPA.
How do I stack multiple HVAC rebates and tax incentives on the same project?
Most commercial HVAC incentive programs can be combined on a single project. A typical stacking approach: (1) Apply for NV Energy utility rebate (cash back, reduces project cost), (2) Claim Section 179D deduction on your tax return (reduces taxable income), and (3) Elect Section 179 accelerated depreciation for the remaining cost (deducts entire cost in year one instead of over 39 years). If installing heat pump systems, the Section 48 Investment Tax Credit (up to 30%) may be more valuable than 179D. Important: utility rebates reduce the 179D cost basis, and ITC and 179D generally cannot be applied to the same cost. Work with your tax professional to determine the optimal combination for your specific situation.
What is the typical payback period for a commercial HVAC upgrade in Las Vegas after rebates?
After accounting for NV Energy rebates and federal tax incentives, the typical payback period for a commercial HVAC upgrade in Las Vegas is 3-7 years, depending on the scope of the project, the age and efficiency of the equipment being replaced, and the building's cooling load. Las Vegas payback periods are shorter than the national average because the extreme cooling demand amplifies energy savings — a 20% efficiency improvement saves more kWh per year in a market with 10-14 hours of daily cooling runtime than in a market with 6-8 hours. After payback, the energy savings continue for the remaining 15-20 year equipment life, providing ongoing return on the initial investment.
Does The Cooling Company help with rebate applications?
Yes. The Cooling Company provides rebate application support as part of our commercial HVAC services. We help identify qualifying equipment, prepare NV Energy rebate pre-applications, coordinate timing with program deadlines, specify equipment that meets efficiency thresholds, provide required post-installation documentation, and connect you with energy modeling professionals for Section 179D certification. Our familiarity with NV Energy program requirements helps ensure applications are approved the first time, avoiding the delays and denials that result from incomplete or incorrectly submitted paperwork. Call (702) 567-0707 to discuss your project and available incentives.
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Related reading: Learn about commercial HVAC systems, building automation, HVAC energy efficiency, and our tax credits overview.
Need Help With Commercial HVAC Rebates in Las Vegas?
The Cooling Company provides expert commercial HVAC service with built-in rebate program support throughout Las Vegas, Henderson, and North Las Vegas. Our licensed technicians deliver honest assessments, upfront pricing, and reliable results.
Call (702) 567-0707 or visit commercial HVAC services, AC repair, maintenance, or installation for details.