Bounce Energy Savings

Don't Miss Out on Upcoming Tax Credits

By brooke, March 10, 2010, Taxes

Have you been putting off buying that new washer/dryer or dishwasher? What’s been holding you back, is it the high price tag? Well, if that is the case, then I have some good and hopefully helpful news for you. There are two programs coming soon that you could be eligible for that can help offset the price of a new appliance.

The first is a federal tax credit for consumer energy efficiency, which is offered through the US Department of Energy. If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for this credit. They are offering a return of 30% of the cost up to $1,500 for items such as biomass stoves, HVACs, insulation, etc. (click here for the full list of products). For items such as geothermal heat pumps, small wind turbines (residential) or solar energy systems, they cover 30% of cost with no dollar limit. One important thing to note is that the credit is for replacing functioning items in an existing home that must be your principal residence (not for second homes) and will not be given for new construction or rentals. The reasoning behind this is to replace old inefficient appliances that waste electricity with newer and more energy efficient models. Be sure to check out the website for expiration dates as they vary depending on the item. If you have purchased appliances in 2010 and would like to apply for the Federal Tax Credit then go to Energy Star’s Tax Credit Information, which explains how to proceed with the application process.

The second program is the energy efficient appliance rebate. The US Congress awarded $300 million nationwide to support state rebate programs for residential ENERGY STAR appliances. From those funds, Texas received about $23 million to support a mail-in rebate program for consumers who purchase eligible ENERGY STAR appliances. The goal is to  replace the same type of older functioning appliances with these newer more efficient models. In addition, this program offers incentives to recycle old appliances. A consumer can qualify for rebates up to two appliances from the approved rebate appliance list (click here for the list). One important thing to note, this program is only applicable for eligible appliances that are purchased between April 16 and April 25, 2010. There is a way to reserve an appliance rebate by calling a toll-free number or registering online about two weeks before April 16, 2010. Reserving an appliance is something to consider because it is not until after the reserved mail-in rebates are awarded, that any remaining funds will be given to consumers. Also keep in mind that funds will be dispersed on a first come, first-served basis.

Click here for more information on the Federal Tax Credit.
Click here for more information on the Texas Energy Efficient Appliance Rebate Program.

Also, find out more about how you can take advantage of the Energy Efficiency Tax Credits.

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Tags: tax credits, Taxes