Space Heating and Cooling (HVAC)

Disclaimer: The information provided on this page is for educational purposes only. Please consult a qualified tax advisor or licensed contractor for personalized advice.

Space Heating and Cooling: Maximizing Efficiency for Nevada Homes

In Nevada, where temperatures range from scorching summers to chilly winters, heating and cooling systems are crucial for maintaining comfort. These systems include air conditioners, furnaces, heat pumps, and other equipment designed to warm or cool indoor spaces.

Heating and cooling your home can account for more than half of your total energy use, and Nevada families pay some of the highest energy bills, ranking tenth nationwide.

By upgrading to energy-efficient HVAC systems, such as heat pumps and high-efficiency air conditioners, you can significantly lower your energy bills while improving comfort year-round. 

Fortunately, the federal Inflation Reduction Act provides tax credits to help Nevada residents support these upgrades. 

Through its PowerShift program, NV Energy customers may also take advantage of rebates for qualifying heat pump water heaters, residential air conditioners, and heat pumps. These rebates can lower the upfront expenses for these systems. 

Additionally, NV Energy’s FlexResponse program offers ways to save on electric bills with automatic adjustments to your HVAC runtime and temperature settings using a company-installed Smart Thermostat during hours of high demand.

How do heat pumps and energy-efficient A/C units work?

Heat pumps move heat rather than generating it. During colder months, heat pumps extract heat from the outside air (even when it’s chilly!) and transfer it indoors. During hot Nevada summers, heat pumps work in reverse, pulling heat from indoors and moving it outside, effectively cooling your home.

Energy-efficient air conditioning units operate similarly to conventional systems but use advanced technology like variable-speed compressors and improved coils to cool your home using less electricity. This reduces energy use and saves money.

Choose a Way to Save

SaveEnergyNV connects Nevada residents to tax credits, rebates, discounts, and more to bring down energy costs. Unlock savings through electrification and energy efficiency today!

Frequently Asked Questions

How much can Nevadans save?

The Energy Efficient Home Improvement Credit provides a 30% tax credit (up to $2,000 annually and resetting annually) for heat pumps and heat pump water heaters. This credit also provides $600 for new, more efficient central conditioning units. The Residential Clean Energy Credit provides a tax credit for 30% of (uncapped) the cost of a geothermal heating installation.

NV Energy’s PowerShift program offers a $400 discount on qualifying heat pump water heaters, with additional varying incentives for energy-efficient A/C units and heat pumps.

Who qualifies?

The Energy Efficient Home Improvement Credit is available to homeowners of all income levels, but must be used toward a primary residence. New construction and rentals do not qualify.

The Residential Clean Energy Tax Credit can be used by any resident of all income levels, homeowners and renters, and for new or existing homes. 

Anyone who meets these requirements and pays federal income taxes can claim the credit on their taxes. The credit also restarts each year, so homeowners can apply for new projects on their taxes each year. 

NV Energy customers looking to use incentives for a heat pump, A/C unit, or heat pump water heater, be sure to check their the PowerShift program requirements before moving forward.

What qualifies?

Always check the product eligibility with your installer or retailer to ensure your system meets all IRS and Energy Star specifications. You can find a comprehensive list of tax-credit-eligible equipment on the Energy Star Product Finder.

Air Source Heat Pumps

  • Must meet or exceed the highest Consortium for Energy Efficiency (CEE) performance tier.
  • Must meet specific SEER2 (Seasonal Energy Efficiency Ratio) ratings outlined by the IRS and Energy Star guidelines.

Central Air Conditioners

  • Must meet Energy Star efficiency standards.
  • Split systems must have a SEER2 rating of at least 16, and packaged systems must have a SEER2 rating of at least 15.2.

Heat Pump Water Heaters

  • Must meet or exceed Energy Star certification standards.
  • Typically, these units use less than half the energy of traditional electric resistance water heaters.

Geothermal Heat Pumps

  • Eligible geothermal systems include closed-loop, open-loop, and direct expansion systems.
  • Must meet Energy Star certification standards to qualify for the Residential Clean Energy Credit (25D).

How to claim the tax credit?

To claim both the Energy Efficient Home Improvement Credit and Residential Clean Energy Tax Credit:

  1. Purchase and professionally install a qualifying system (heat pump, heat pump water heater, central air conditioning unit, or geothermal heat pump). 
  2. Keep your receipts and installation documents. 

Fill out IRS Form 5695. Then, submit the form with your yearly tax return.

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