Page last updated on January 21, 2026 at 12:14 pm
This page outlines rebates and financing options available for businesses, nonprofits, and other organizations to make their buildings more sustainable. Site updates will reflect changes in incentives as they occur.
Solar, Energy Efficiency, and Lighting (SEEL) Grant Program
The City of Bloomington provides SEEL grants for small businesses, local organizations, and nonprofits to install renewable energy systems or upgrade the energy efficiency of their facility. View the SEEL program page for more information.
Energy Efficiency Projects
The following rebates and financial incentives can be used by commercial businesses who are interested in pursuing energy efficiency upgrades for their facilities. These upgrades can include building envelope projects, EnergySmart appliance upgrades, LED conversions, HVAC upgrades, and more.
Duke Energy Rebates
As the main utility provider in Bloomington, Duke Energy provides a number of rebates for energy efficiency upgrades. Duke Energy’s Small Business Energy Saver program offers up to 80% discounts in energy efficiency upgrades for non-residential customers. Participation in the Small Business Energy Saver program is limited to organizations whose peak energy demand is 180kW or less.
Duke customers can also purchase products directly from the Duke Energy Business Savings store. Products included as part of the grant must be pre-approved prior to purchase and reimbursement.
Energy Efficiency Tax Deduction
The Energy Efficient Commercial Buildings Tax Deduction is a financial incentive ($2.50-$5.00 per square foot) for interior lighting, building envelope, or heating/cooling/ventilation system upgrades based on energy savings. Building owners should follow IRS instructions on claiming the deduction on their tax return forms. This tax credit was repealed and will only be available for property constructed before June 30, 2026.
Solar and Renewable Energy Projects
The following rebates and financial incentives can be used by commercial businesses who are interested in installing a solar system for their facilities.
Federal Investment Tax Credit
This tax credit for solar installations was repealed and expired at the end of 2025.
Renewable Energy Property Tax Exemption
In Indiana, the Renewable Energy Property Tax Exemption allows for the assessed value of renewable energy systems to be exempt from property taxes. Learn more about how to file at: www.in.gov/dlgf/deductions-property-tax/
Indiana Sales Tax Exemption
Indiana’s sales tax exemption for electric generating equipment allows for the exemption of all sales tax associated with a solar installation on your property. To claim this tax exemption, you must provide Form ST-105 to the seller.
For Monroe County: the Rural Energy for America Program through the US Department of Agriculture finances renewable energy systems and energy efficiency improvements for rural small business and agricultural producers.
Tax Exempt Entities
Most energy efficiency and clean energy federal tax credits from the Inflation Reduction Act expired at the end of 2025, effectively ending the Direct Pay program. The energy efficient commercial buildings deduction will last through June 30, 2026 for property installed prior to that date. The Inflation Reduction Act allows tax-exempt entities such as local governments, schools, and churches to file for a Direct Pay reimbursement from the IRS instead of a tax credit. Organizations should work with a tax professional to claim Direct Pay.
Financing for Businesses and Organizations
Indiana Energy Independence Fund is the state's nonprofit green bank offering cost-effective loans for a wide variety of businesses, nonprofits, and organizations. Financing is available for sustainability and energy improvement projects. IEIF utilizes a network of approved contractors.
Hoosier Hills Credit Union offers local solar loan financing for businesses and nonprofits. All participants in the City's SEEL grant program are eligible for financing through Hoosier Hills.
IFF is a Community Development Financial Institution (CDFI) focused on strengthening nonprofits and the communities they serve by offering capital support. IFF offers a variety of flexible lending products which help nonprofits achieve building improvements.