The appliance version of Cash for Clunkers launches in Spring 2010. Different states have individual start dates. The money comes from the United States American Recovery and Reinvestment Act or ARRA. The individual states and territories were provided formula-based funding which primarily looked at population. The program is referred to as "cash for appliance clunkers" program. Each state and territory decided how much each rebate would be and selected a group of appliances that would be eligible for the rebate.
What's the Deal?
Over $300 million was set aside and distributed to the states. Each state designed their own plan. The state of residence will be the state who determines which appliance is eligible for trade in and which are eligible for purchasing with a rebate. All appliances must be rated as an Energy Star home appliance. The funding was provided in the Fall of 2009 and most all state programs will be launched in March and April of 2010. Hundreds of rebates will be offered when considering over 50 programs have been developed.
Most states do not require the old appliance to be brought to the store at the time of purchase as with the cash for clunkers. Some states require proof of recycling, however, most only encourage recycling of the old appliance. The amount of the rebate varies between each state program.
A limited amount of money is available for the rebate. Although the states have dates set to end the program, they will end the "cash for appliance clunkers" sooner when the funds are exhausted.
What is an Energy Star Appliance?
Energy Star is a government approved symbol that indicates an appliance is energy efficient. Efficiency helps save money and protect the environment through controlling resources. Each appliance that meets the criteria set forth in the Energy Star guidelines will be clearly labeled. If the appliance does not have a label it is not and Energy Star and does not qualify for the cash for appliance clunkers rebate program.
The Energy Star label was developed to meet several goals. The appliances which carry the label will help meet the Energy Star goals. They are:
- Use energy wiser to reduce greenhouse gas emissions and other pollutants.
- Help consumers save money by easily identifying and purchasing energy-efficient products without sacrificing performance, features, and comfort.
Is this the Same as the Tax Credit?
No. The Tax Credit for energy-efficiency is a broader program that offers 30% tax deduction for specific items purchased for home improvements.
Reference: Appliance Rebate Program
Jennifer Terry - Jennifer Terry has worked to promote self-determination and consumer education for 10 years. She has been writing since 2004 and has been ...
