Page last updated on November 29, 2022 at 4:46 pm
This page outlines rebates and financing options available for residents interested in making their home more sustainable. This list will be updated to reflect changes on an ongoing basis.
Energy Efficiency Projects
The following rebates and financial incentives can be used by homeowners who are interested in pursuing energy efficiency upgrades in their homes. These upgrades can include building envelope projects, EnergySmart appliance upgrades, LED conversions, HVAC upgrades, and more.
Duke Energy Rebates
Duke Energy provides a number of rebates for home energy efficiency upgrades. The Smart $aver Home Improvement Rebates offers up to $1400 in rebates for investments in HVAC, weatherization, heat pumps, and pool pump projects. These rebates can be paired with the $1000 rebate offered by the City of Bloomington BGHIP Program.
Additionally, Duke’s Online Savings Store offers discounted efficiency enhancing products, such as LEDs and light fixtures, smart thermostats, water fixtures, and power strips.
Home Energy Rebates from the Inflation Reduction Act
The Inflation Reduction Act (IRA) has initiated or increased the value of three main incentives for homeowners: the 25C Energy Efficiency Home Improvement Credit, the High Efficiency-Electric Home Rebate (HEEHR) Program, and the HOMES Rebate Program and are valued as follows:
- 25C: Tax credit of up to 30% of the cost of a project to offset a tax liability. Homeowners should use IRS Form 5695 to claim this tax credit.
- HEEHR: Up to $14,000 worth of rebates for appliance, ventilation, HVAC and energy upgrades for households with a total annual income less than 150% of the local median income. These rebates will be distributed through state energy offices starting in 2023.
- HOMES: Up to $4,000 (or $8,000 for low-medium income households) for investment in weatherization upgrades or appliance upgrades to improve energy efficiency. Amounts depend on energy savings that occur as a result of the project. These rebates will be distributed through state energy offices starting in 2023.
All of these rebates and tax credits can be paired with the income qualified $1,000 rebate offered by the City of Bloomington BGHIP Program.
Homeowners can use this IRA calculator to get an estimate of how much money they may qualify for from the IRA based on a personalized assessment of incentives relevant to income, household size, and location of residency. These incentives require residents to directly file with the federal or state government in order to receive funds.
Solar Projects
The following rebates and financial incentives can be used by homeowners who are interested in pursuing renewable energy investments for their homes.
Federal Investment Tax Credit
In addition to the grant funding provided by the City of Bloomington, all households that install solar also qualify for the federal Investment Tax Credit, which is equal to 30% of the cost of the solar installation and other equipment, such as solar storage/batteries, racking equipment, transformers, and other prorated indirect costs. This rebate can be paired with the $1,000 income qualified rebate offered by the City of Bloomington BGHIP Program.
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 solar installation. To claim this tax exemption, you must provide Form ST-105 to the seller.