Allen County Energy Savings:
Rebates & Programs

Why Fort Wayne Energy Costs Matter

Indiana Michigan Power (I&M), the primary electric utility for Fort Wayne, charges residential customers approximately 16.1 cents per kWh. That is 8% higher than the Indiana state average (14.90 cents) and 15% above the national average. For a typical Fort Wayne home running a 3-ton AC system 8 hours per day during peak summer, that translates to roughly $145-$170 per month just for cooling. An older, inefficient system can easily double that.

The good news? Every percentage point of efficiency improvement directly reduces your bill. A 14 SEER AC replaced with an 18 SEER unit uses approximately 22% less electricity for the same cooling output. In Fort Wayne's climate, that 22% savings equals roughly $300-$400 per year on cooling costs alone. Over 15 years, that is $4,500-$6,000 in savings — before any rebates or incentives.

Federal Incentives

Energy Efficient Home Improvement Credit (Section 25C)

The federal government offers a tax credit equal to 30% of the cost of qualifying energy-efficient home improvements, with an annual cap of $3,200. This credit is scheduled to expire for work completed after December 31, 2025. If you are planning HVAC upgrades, time is running out to claim this credit.

• Heat pumps: up to $2,000 per year
• Furnaces and AC units: up to $600 per item
• Home energy audits: up to $150
• Insulation, windows, and doors: up to $1,200 total per year

To qualify, equipment must meet Consortium for Energy Efficiency (CEE) highest efficiency tier requirements. Most reputable HVAC contractors in Fort Wayne will sell equipment that qualifies, but always verify before you buy. You will need IRS Form 5695 when filing your taxes.

Residential Clean Energy Credit (Section 25D)

This credit covers geothermal heat pumps, solar panels, and battery storage — also at 30%, but with no annual cap. It is also scheduled to expire December 31, 2025. If you are considering a geothermal system for your Fort Wayne home (and have the yard space for the ground loop), this credit can be worth $10,000+.

Indiana Energy Saver Program

On May 14, 2025, the Indiana Office of Energy Development launched the Indiana Energy Saver Program, funded by $182 million from the federal Inflation Reduction Act. This is the largest state-level energy rebate program in Indiana history, and Fort Wayne homeowners are eligible.

Home Efficiency Rebates (HOMES)

Open to all homeowners, regardless of income. Rebates are calculated based on the percentage of modeled or measured energy savings:

• 20-35% energy savings: Up to $2,000 (retrofit) or $1,000 (new construction)
• 35%+ energy savings: Up to $4,000 (retrofit) or $2,000 (new construction)

To claim HOMES rebates, you typically need a pre-installation energy assessment and a post-installation verification. Many contractors in Fort Wayne can coordinate this as part of the installation process. The rebate is paid to the contractor, who passes the savings to you.

High-Efficiency Electric Home Rebates (HEEHRA)

This is the big one for income-qualified households. If your household income is below 150% of the area median income for Allen County (approximately $95,000-$110,000 for a family of four), you can receive point-of-sale rebates that directly reduce your installation cost:

HEEHRA rebates are capped at $14,000 total per household and cannot be combined with HOMES rebates for the same upgrade. However, you can claim both programs for different upgrades (for example, HOMES for insulation and HEEHRA for a heat pump).

How to apply: Visit IndianaEnergySaver.com to check eligibility and find participating contractors. You will need proof of income (tax returns or pay stubs) and your utility account information.

I&M (Indiana Michigan Power) Utility Rebates

I&M offers its own rebate programs for customers in its Fort Wayne service territory. These programs change periodically, but typical offerings include:

• High-efficiency AC rebates: $200-$500 for 16+ SEER systems
• High-efficiency furnace rebates: $200-$400 for 95%+ AFUE units
• Heat pump rebates: $300-$600 for qualifying systems
• Smart thermostat rebates: $50-$100 for ENERGY STAR certified models
• Home energy audit discounts: Reduced-cost or free audits for qualifying customers

I&M rebates can often be stacked with federal and state incentives, meaning you can claim all three for the same project. A $12,000 dual-fuel heat pump system could receive $3,200 federal credit + $8,000 HEEHRA rebate + $400 I&M rebate = $11,600 back, bringing your net cost to $400.

Weatherization Assistance Program (WAP)

For low-income Fort Wayne households (typically under 200% of federal poverty level), the federally funded Weatherization Assistance Program provides free energy efficiency improvements:

• Attic and wall insulation
• Air sealing and weatherstripping
• Furnace repair or replacement (if unsafe)
• Window and door repair or replacement
• Refrigerator replacement (if inefficient)

In Allen County, the Weatherization Assistance Program is administered through the Indiana Housing and Community Development Authority (IHCDA) and local community action agencies. Priority is given to elderly residents, families with young children, and people with disabilities. Income limits for a family of four are approximately $60,000-$65,000 annually, though this changes with federal poverty guidelines.

Fort Wayne City and Allen County Programs

While Fort Wayne city government and Allen County do not currently operate their own HVAC-specific rebate programs, they participate in state and federal initiatives. The City of Fort Wayne's Office of Community Development occasionally offers home repair grants for low-income homeowners, which can include HVAC replacement if the system is deemed a health or safety hazard.

Additionally, the Allen County Department of Environmental Management runs programs related to air quality and energy efficiency education. They do not provide direct rebates, but their staff can connect you with available programs and certified contractors.

How to Stack Rebates Without Getting Disqualified

Stacking multiple rebates is legal and smart — but only if you follow each program's rules. Here is how to do it correctly:

1. Start with the state program. Indiana Energy Saver rebates are typically point-of-sale, meaning they reduce your upfront cost. Federal tax credits are claimed on your tax return. I&M rebates are usually mailed as checks after installation.
2. Use different programs for different upgrades. You cannot claim HOMES and HEEHRA for the same heat pump, but you can claim HOMES for insulation and HEEHRA for the heat pump.
3. Keep every receipt and certificate. Federal tax credits require proof that the equipment meets CEE efficiency standards. The contractor should provide a Manufacturer's Certification Statement. Keep it with your tax records.
4. Do not let the contractor handle everything without verifying. A reputable Fort Wayne contractor will help you navigate rebates, but you should independently verify your eligibility and the final rebate amounts.

The ROI Calculation for Fort Wayne Homes

Let us run the numbers on a typical Fort Wayne scenario: replacing a 15-year-old 80% AFUE furnace and 14 SEER AC with a dual-fuel system (cold-climate heat pump + 96% AFUE furnace) in a 2,000 sq ft home.

• System cost: $12,000
• Federal tax credit (30%): -$3,200 (capped)
• Indiana HEEHRA rebate: -$8,000
• I&M utility rebate: -$400
• Net cost: $400
• Annual energy savings: $350-$500
• Payback period: Immediate (net cost is essentially zero)
• 10-year savings: $3,500-$5,000 in reduced utility bills

Even without income qualification for HEEHRA, the federal credit and I&M rebates bring the net cost to approximately $8,400. With $350-$500 in annual savings, the payback period is 5-7 years — well within the system's expected lifespan.