Indiana headline: Good news and act now. Indiana’s state rebate is live: up to $8,000 off a heat pump for income-eligible households (below 150% AMI), applied as a point-of-sale discount so you never wait for a check. It stacks with utility rebates, up to $3,000 from Duke Energy, $1,000 from NIPSCO, or $725 from AES Indiana. You must use an approved-network contractor. The federal 25C credit expired after December 31, 2025.
The state rebate is open (rare and worth using)
Most states are still waiting on their federal rebate money. Indiana is not. The Indiana Energy Saver Program launched May 14, 2025 and is taking applications in 2026, backed by about $182 million in federal funding and run by the Indiana Office of Energy Development.1
For a heat pump, an income-eligible household (below 150% of Area Median Income) can get up to $8,000, and it comes off the price at purchase as a point-of-sale discount.2
Why point-of-sale matters for you: the discount is subtracted at the register, not mailed months later. For a senior on a fixed income, that means you never have to front the full $14,000 and wait to be repaid. Your approved-network contractor applies it directly to the invoice.
This is the Indiana companion to our 2026 heat pump rebate guide.
The utility layer (stacks on top)
The state discount stacks with your utility’s rebate. The amount depends on who bills you.3
| Utility | Service area | Heat pump rebate |
|---|---|---|
| Duke Energy Indiana | Central and southern IN | up to $3,000 |
| NIPSCO | Northern IN | up to $1,000 |
| AES Indiana | Indianapolis area | up to $725 |
| CenterPoint Energy | Southwest IN (Evansville) | Varies |
| Indiana Michigan Power | Northeast IN (Fort Wayne) | Varies |
Check your electric bill to find your provider. NIPSCO and CenterPoint require the rebate application within 60 days of installation, so do not let the deadline slip.4
Income limits (2026)
The Energy Saver HEAR rebate uses Area Median Income (AMI) at the county level.7 Below 80% AMI gets the highest tier (up to $8,000 or full cost); 80 to 150% AMI gets 50% of project cost.
Approximate 80% AMI thresholds for a family of 4:
| County / region | 80% AMI (family of 4) |
|---|---|
| Marion County (Indianapolis) | ~$70,000 |
| Hamilton County (Carmel, Fishers) | ~$78,000 |
| Lake County (Gary, Hammond) | ~$62,000 |
| Allen County (Fort Wayne) | ~$62,000 |
| Rural Indiana counties | ~$50,000 to $56,000 |
Use the income calculator at indianaenergysaver.com to find your tier. For a senior household on Social Security only, eligibility is usually clean in any Indiana county.
Federal layer (2026)
The federal 25C Energy Efficient Home Improvement Credit, which paid up to $2,000 for a heat pump in prior years, expired for installs after December 31, 2025.5
What remains in 2026:
- 25D Residential Clean Energy Credit: 30% of solar cost through 2034. Applies if you pair the heat pump with solar.6
- 25C on insulation, panel upgrades, and audits: still active at smaller caps. Heat pumps are excluded.
See IRA 25C expired 2026 for the full federal picture.
Senior stack scenarios
Scenario A: Indianapolis retired couple, AES Indiana customer, 75% AMI
- State Energy Saver HEAR (below 80% AMI): up to $8,000, point-of-sale
- AES Indiana heat pump rebate: up to $725
- Total: up to $8,725. On a $14,000 install, out-of-pocket can drop near $5,000.
Scenario B: Bloomington household, Duke Energy Indiana, 120% AMI
- State Energy Saver HEAR (80 to 150% AMI, 50% of cost): up to $4,000
- Duke Energy Indiana heat pump rebate: up to $3,000
- Total: up to $7,000. On a $15,000 install, out-of-pocket lands around $8,000.
Scenario C: Carmel household, income above 150% AMI
- State Energy Saver: not eligible (over 150% AMI)
- Duke Energy Indiana rebate: up to $3,000
- Total: up to $3,000. Consider the 25D solar credit if pairing with solar.
Verify your contractor first
The Indiana rebate has a strict rule: the state discount only applies if your contractor is in the Indiana Energy Saver approved network. Using an unapproved contractor means no discount and no rebate.2
Red flags to reject:
- Door-to-door pitches. Legitimate contractors do not cold-call.
- A contractor who cannot show network enrollment. No enrollment means no state discount.
- No Indiana license number on the quote.
- R-410A equipment for a 2026 install. That refrigerant no longer qualifies under the EPA rule.8
Verify a license in about a minute with our Indiana contractor license lookup guide.
- Check your income tier with the calculator at indianaenergysaver.com
- Find your utility on your electric bill (Duke, NIPSCO, AES, CenterPoint, I&M)
- Pick an approved-network contractor with a valid Indiana license
- Apply through indianaenergysaver.com so the point-of-sale discount is filed
- Submit the utility rebate within any deadline (NIPSCO and CenterPoint: 60 days)
What’s next
- Federal 2026 landscape: Heat pump rebates 2026
- Post-25C federal picture: IRA 25C expired 2026
- Cold-climate equipment: Cold-climate heat pumps
- Total cost math including stacks: Heat pump cost calculator
- Indiana contractor check: Indiana contractor license lookup
- Family in other states: Illinois, Ohio
Citations
- Home Energy Rebates (Homeowner Incentives). Indiana Office of Energy Development, retrieved July 18, 2026. in.gov/oed home energy rebates.
- Home Appliance Rebate (HEAR) Program Details. Indiana Energy Saver Program, retrieved July 18, 2026. indianaenergysaver.com home appliance rebate.
- Home Improvement Rebates and Discounts. AES Indiana, retrieved July 18, 2026. aesindiana.com rebates.
- Residential Energy Efficiency Rebates. NIPSCO, retrieved July 18, 2026. nipsco.com rebates.
- Energy Efficient Home Improvement Credit (25C). U.S. Internal Revenue Service. irs.gov 25C.
- Residential Clean Energy Credit (25D). U.S. Internal Revenue Service. irs.gov 25D.
- Income Limits Documentation System. U.S. Department of Housing and Urban Development, April 2026. huduser.gov income limits.
- Technology Transitions: Restrictions on Use of Certain HFCs. U.S. Environmental Protection Agency. epa.gov technology transitions.