Cash for Clunker Appliances - Save Up To $200

Energy Star Home Appliance Rebates Roll Out For 2009 and 2010

Sep 20, 2009 Cyndi Allison

Need a new stove, washing machine, water heater or heating system? Get a $50 to $200 rebate starting in November 2009 with Cash for Appliances.

Nearly $300 million will be pumped into rebates for Energy Star home appliances through the United States Department of Energy at the end of 2009 with consumers saving $50 to $200 per qualified home appliance. This funding is part of the American Recovery and Reinvestment Act which funded Cash for Clunkers during the summer of 2009 and will help America go greener during a time of economic hardship.

How the Obama Cash for Appliances Works

Funding for appliance rebates is on the state level as tasked by the Obama administration and based on formulas established by the Energy Policy Act of 2005. Basically, each state will submit a proposal for clunker appliance rebates including plans for types of appliances to be included, amounts of rebates on appliance purchases, and plans for recycling old appliances (rebate appliance purchases do not require a trade in like Cash for Clunkers).

Allocations will be based on population, so larger states like California will receive more stimulus rebate cash than less populated states. The allocation for California is $35,267,000 while a smaller state like North Carolina, for example, will receive $615,000 per the FY 2009 EE Rebates Stimulus State Calculations. The basic allotment per state breaks down to $1 per person living in the state.

States do have some flexibility in terms of purchases included in the appliance rebate program and also in the amount of rebate per qualifying purchase. The Department of Energy does, however, encourage focusing on appliances with the greatest impact on energy savings, so heating/cooling systems, water heaters, and other energy guzzling appliances should top the state lists and garner the largest rebates.

A percentage of the Obama Cash for Appliances rebate funding is distributed upon application by states (to offset administrative costs estimated to run about 10% to 25% of the total) with the balance remitted when plans are approved by the federal government. Government officials anticipate that the bulk of the rebate money will be awarded by the end of November 2009, meaning that home appliances should be eligible and rebates flowing by the 2009 holiday season.

Qualifying Home Appliances For Cash for Appliances Incentive Program

Only Energy Star rated appliances (marked with Energy Star stickers for easy identification) will qualify, and not all Energy Star appliances will qualify. In addition, qualifying appliances and rebates can vary from state to state depending on the plan submitted and approved during the application phase.

Appliances to research and consider if purchasing with the “Cash for Refrigerators” or “Cash for Freezers” etc appliance program include:

  • Oil Furnaces
  • Gas Furnaces
  • Boilers
  • Air Source Heat Pumps
  • Geothermal Heat Pumps
  • Central Air Conditioners
  • Room Air Conditioners
  • Water Heaters
  • Washing Machines
  • Refrigerators
  • Freezers
  • Dishwashers

Since the appliance rebate program is on a state-by-state basis, individual states can propose additional appliances to add to the list within the state on a case-by-case basis for approval.

Bonus Tax Savings on Energy Star Appliances

As an added incentive, some Obama Cash for Appliance purchases will qualify for tax credit rebates for 2009/2010. Certain home investments including water heaters, for example, may earn credits of 30% of the cost (up to $1500) for existing homes, while geothermal heat pumps could check in at a 30% rebate for existing and new homes through 2016 and no cap on the dollar amount.

Not all Energy Star purchases qualify for tax credit. Typically, qualifying tax rebate investments include purchases which generate the most energy savings and run in the higher cost bracket. It is, however, possible (with planning) to cash in on the Appliance Rebates for 2009 and 2010 plus get a tax break through the Federal Tax Credits for Energy Efficiency program.

Learn more about double dipping with Cash for Appliances and Obama tax credits for 2009-2010.

Stimulate the Economy and Save with Obama’s Cash for Appliances Program

For consumers who need to upgrade or invest in home appliances, the Cash for Appliances rebate program offers an opportunity to stimulate the sluggish economy plus get a rebate and continued energy savings for years to come. If the old heating system is draining the budget or if the washing machine or refrigerator is on its last leg, now is the time to buy.

See Also:

Cash for Appliances - Refrigerators

Cssh for Appliances - Freezers

The copyright of the article Cash for Clunker Appliances - Save Up To $200 in Personal Budgeting/Finance is owned by Cyndi Allison. Permission to republish Cash for Clunker Appliances - Save Up To $200 in print or online must be granted by the author in writing.
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Comments

Sep 20, 2009 9:12 PM
Katrena Wells :
Thanks for the info. I only just recently heard of this!
Sep 21, 2009 8:34 AM
Guest :
Terrrific! I need to get a new washing machine. Wish they had dryers on the Cash for Appliances list. Oh well, maybe I can get one of those while I'm saving money on the washer. Gotta love some Obama rebates. Oh yah.
2 Comments