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Indiana Heating and Air Conditioning Incentive Program (IHIP) Indiana Heating and Air Conditioning Incentive Program (IHIP)

The Indiana Heating and Air Conditioning Incentive Program has been approved by the U.S. Department of Energy.  The program is now underway and will remain in place until the fund is exhausted.

Program:  Indiana Heating and Air Conditioning Incentive Program (IHIP)
Starts:  February 1, 2010
Ends:  When program funding runs out
Rebate Amount:  Up to $500 for documented purchase and installation of conventional HVAC system, up to $1,000 for geothermal heat pump
Funds:  $6.1 million
Eligible:  Indiana residents who own a single family home
Eligible Appliances:  Energy Star rated Furnaces, Boilers, HVAC systems, Geothermal Heat Pumps purchased and installed AFTER February 1, 2010.

How to apply:

Rebate forms are available now at   The rebate forms must be faxed, emailed or mailed in with appropriate documentation.  Once an application is processed, a rebate check will be mailed.  Consumers should expect their rebate check, or a letter stating why their rebate claim was rejected within 4-6 weeks.  

“Why doesn’t the program include refrigerators/washers/dishwashers/etc?”

There are a variety of reasons why the Indiana program does not include so-called “white goods”

• One of the largest users of energy in a single family home is the Heating, Ventilation Air Conditioning (HVAC) system.  Replacing older HVAC systems with Energy Star rated units can provide the single largest increase in a home’s energy efficiency, and subsequently the largest cost savings.
• Many utilities also have rebate programs of $200-$400 for the installation of high efficiency HVAC systems.  If a homeowner qualifies for both, the savings on purchase is significantly increased. For a list of utility incentives, visit
• In designing the Energy Star Appliance Rebate program, the U.S. Department of Energy did NOT include funds for recycling.  Recycling old appliances (such as refrigerators and dishwashers) would be the only way to ensure the old appliances were taken out of service.  If Indiana had included recycling, the required administrative costs would have significantly reduced the number of rebates that could be offered.
• Replacing old HVAC systems is not only a matter of money; it can be a matter of safety.  Older units can have undetected defects (such as a cracked heat exchanger) that can be extremely dangerous.   Providing a significant rebate program may help some Hoosiers make the decision to replace older furnaces.
• The cost differential between Energy Star rated and traditional HVAC systems is much greater than the difference between Energy Star rated and nonrated white goods.  This means without a rebate its more difficult for consumers to upgrade to an Energy Star rated HVAC system.