The Programs: Federal, State, and Utility
Three layers of rebates are available to Fort Wayne homeowners in 2026. The trick is stacking them correctly without violating program rules.
1. Federal Tax Credits (Ending Soon)
The Energy Efficient Home Improvement Credit (Section 25C) offers 30% of the cost of qualifying upgrades, with these caps:
- Heat pumps: up to $2,000 per year
- Furnaces and AC: up to $600 per item
- Home energy audits: up to $150
- Insulation, windows, doors: up to $1,200 total per year
Critical deadline: Work must be completed by December 31, 2025. If you are reading this in 2026, this credit has expired unless Congress extends it.
2. Indiana Energy Saver Program
Launched May 14, 2025, with $182 million in federal funding. Two tracks:
HEEHRA (Income-Qualified): Households under 150% of area median income (approximately $95,000-$110,000 for a family of four in Allen County) can receive:
- Up to $8,000 for a heat pump
- Up to $1,750 for a heat pump water heater
- Up to $840 for an electric stove/cooktop
- Up to $1,600 for weatherization
- Up to $2,500 for electrical wiring upgrades
HOMES (All Households): Rebates based on energy savings achieved:
- 20-35% energy reduction: up to $2,000
- 35%+ energy reduction: up to $4,000
3. I&M Utility Rebates
Indiana Michigan Power offers additional rebates for its Fort Wayne customers:
- High-efficiency AC (16+ SEER): $200-$500
- High-efficiency furnace (95%+ AFUE): $200-$400
- Heat pump: $300-$600
- Smart thermostat: $50-$100
How to Stack Rebates Without Getting Disqualified
- Use different programs for different upgrades. You cannot claim HEEHRA and HOMES for the same heat pump. But you can claim HOMES for insulation and HEEHRA for the heat pump.
- Apply for state rebates first. These are typically point-of-sale and reduce your upfront cost.
- Claim federal credits on your tax return. Use Form 5695. Keep all receipts and manufacturer certification statements.
- Submit I&M rebates separately. These usually require proof of installation and equipment specs. Your contractor should provide the necessary documentation.
Real-World Example: A $12,000 Dual-Fuel System
- System cost: $12,000
- Federal tax credit (30%, capped): -$3,200
- Indiana HEEHRA rebate: -$8,000
- I&M utility rebate: -$400
- Net cost: $400
For income-qualified households, a complete HVAC upgrade can cost less than a single emergency repair call. Even without HEEHRA income qualification, the federal credit and I&M rebates bring the net cost to approximately $8,400 — with annual energy savings of $350-$500, paying back in 5-7 years.
How to Apply
Start at IndianaEnergySaver.com. You will need:
- Proof of income (tax returns or pay stubs) for HEEHRA
- Utility account information
- Home address and property details
For federal tax credits, file IRS Form 5695 with your tax return. For I&M rebates, visit indianamichiganpower.com or call their customer service line.