HVAC & Heat Pump Rebates, Tax Credits & Incentives in Northern Indiana

Upgrading your heating and cooling system is a significant investment, and the good news is that Northern Indiana homeowners rarely pay sticker price. Between utility rebates, federal tax credits, state energy programs, and manufacturer promotions, most Cavinder customers qualify for multiple incentives that bring the real out-the-door cost down meaningfully.

This page summarizes the programs active for homeowners in Granger, South Bend, Mishawaka, Elkhart, and the rest of St. Joseph and Elkhart counties. Offer amounts change, so call (574) 633-4557 for the current figures before you budget a project.

NIPSCO Residential Rebates

NIPSCO (Northern Indiana Public Service Company) serves most Michiana homeowners for natural gas and, depending on address, electric service. Their residential energy-efficiency program offers rebates on:

• High-efficiency natural gas furnaces (AFUE thresholds apply)
• ENERGY STAR central air conditioners and heat pumps
• Smart thermostats
• Insulation and air sealing
• Tankless water heaters

Cavinder provides the equipment invoice and AHRI certificate required for the rebate application, and we can submit paperwork on your behalf.

AEP Indiana Michigan Power Rebates

If your home sits in AEP Indiana Michigan Power's electric service territory (portions of St. Joseph and Elkhart counties), their eShop and residential programs offer instant rebates on ENERGY STAR room air conditioners, heat pumps, smart thermostats, and heat pump water heaters. We'll confirm your utility at the quote visit.

Federal 25C Energy Efficient Home Improvement Credit

The federal 25C tax credit (extended and expanded under the Inflation Reduction Act) allows homeowners to claim 30% of qualifying equipment and installation costs on their federal taxes. Annual caps apply:

• Up to $2,000 per year for qualifying heat pumps and heat pump water heaters
• Up to $600 per year for qualifying central air conditioners or furnaces
• Up to $600 per year for electrical panel upgrades required to support new equipment

The credit is non-refundable but renews each tax year, so bundling a heat pump this year and a panel upgrade next year is a legitimate strategy. Your tax professional files IRS Form 5695.

High-Efficiency Electric Home Rebate Act (HEEHRA)

HEEHRA is the IRA-funded state-administered point-of-sale rebate program for income-qualified households replacing fossil-fuel systems with electric heat pumps, heat pump water heaters, and induction ranges. Indiana's program is administered through the Indiana Office of Energy Development. Cavinder tracks the active rollout; call us for current status and eligibility rules.

Manufacturer Rebates on Qualifying Equipment

Cavinder installs several brands that run seasonal rebates:

• Sure Comfort: Seasonal instant rebates on matched furnace and AC systems
• Mitsubishi Electric: Promotions on single-zone and multi-zone mini-split systems (Cavinder is a Mitsubishi Preferred Diamond Contractor)
• Rinnai: Tankless water heater cash-back and extended warranty promotions

How Cavinder Stacks Incentives for You

1. During the free in-home estimate we confirm your utility, review current federal and state programs, and identify every rebate your project qualifies for.
2. The written estimate shows the gross price, every instant rebate, and your net out-of-pocket. No surprises.
3. We install using licensed Indiana technicians (CO19900013 / PC19700254) and issue the AHRI certificate and invoice required for utility and federal filings.
4. We submit manufacturer and utility rebate forms on your behalf whenever the program allows.
5. For the 25C federal tax credit, we provide the documentation you or your accountant needs to file Form 5695.

Combine Rebates with Cavinder Financing

Rebates and financing are not mutually exclusive. Many homeowners apply for Synchrony or Wisetack financing at the point of sale, capture the full federal tax credit at filing time, and stack utility rebates on top. Our estimate walks through the real first-year cost so you can plan the cash flow.

Schedule a Rebate-Ready Estimate

Rebate amounts, income thresholds, and equipment eligibility change year-to-year. Before you commit to any HVAC purchase, call Cavinder at (574) 633-4557 or request a written estimate. We'll confirm the current incentives for your utility, your zip code, and your household situation.