Cash for Appliances, Energy Star Rebate

Energy Rebate, U.S. Government Program Follows Cash for Clunkers

Sep 24, 2009

Cash for Appliances, available as soon as November 2009, is an energy star government program where consumers purchasing a new appliance may be eligible for a rebate.

The federal American Recovery and Reinvestment Act, signed by President Obama in February of 2009, will be providing states with $300 million in stimulus money to pass onto consumers in the form of an appliance rebate. This program, also known as Cash for Appliances, will be regulated individually by each individual state, and consumers can qualify for a rebate of between $50 and $200, depending on the appliance that is purchased and other regulations placed on the program by each state. Eligible appliances for the Cash for Appliances program must carry the Energy Star Label.

Each state must have a proposal turned into the federal government for review by mid-October, 2009, and the Cash for Appliances stimulus program is expected to be available to consumers as soon as November.

What is an Energy Star Appliance?

Energy Star, a voluntary labeling program, identifies products that can save the average consumer up to 30% on their energy bill. The Energy Star label cannot be placed on a product unless it improves energy conservation, meeting strict regulations by the US Department of Energy and the EPA concerning energy efficiency.

The program, which was started in 1992, now covers over 60 different energy products, reducing individual consumer costs as well as lowering gas emissions and the overall carbon footprint.

Energy Star Appliances That Qualify for the Cash for Appliances Stimulus Program

Although each state will list its own qualifications separately, the following Energy Star labeled appliances are expected to be eligible for the rebate:

Cash for Appliances and Other Home Improvement Tax Credits

Although each state will determine if the Cash for Appliances stimulus rebates will be retroactive (eligible for a rebate on previously purchased Energy Star labeled products), it is considered to be highly unlikely due to the fact that the program is designed to encourage new Energy Star label appliance purchases. Unlike the Cash for Clunkers program, no trade in will be required to qualify for the Cash for Appliances rebate.

Certain home improvements listed above, such as upgrading a home with a geothermal heat pump, is eligible for a home improvement tax credit of 30% of its cost if put into service before December 31, 2016. Consumers are encouraged to speak with a tax accountant concerning combining the state Cash for Appliances rebate with the federal Energy Efficiency tax credit, as the purchase may qualify for both incentives.

Readers may also be interested in other home improvement tax credit information that pertains to energy efficient windows, doors, insulation, roofing, HVAC, water heaters, and biomass stoves.

The copyright of the article Cash for Appliances, Energy Star Rebate in Personal Budgeting/Finance is owned by Renee Holmes. Permission to republish Cash for Appliances, Energy Star Rebate in print or online must be granted by the author in writing.