Energy-conscious home owners may qualify for rebates, tax credits

Home owners in Washington who replace existing refrigerators and clothes washers with certain energy efficient appliances could receive rebates as early as April 1. The new incentive funds supplement existing rebate programs.

"Our goal is to have a program that makes it easy for consumers to obtain both incentives," declared the U.S. Department of Energy in announcing programs it approved as of Jan. 27. Washington’s allocation totals nearly $6.3 million. The state’s Department of Commerce will facilitate the distribution of money through an experienced rebate processing company.
Additionally, consumers may be eligible for tax credits for making other energy efficient improvements in their homes.

One of the goals of the appliance rebate program is to remove old, inefficient appliances from the electric grid. By replacing a wasteful refrigerator with an ENERGY STAR refrigerator greater than 9 cubic feet in adjusted volume, purchasers could receive a $75 rebate. An ENERGY STAR clothes washer with an efficiency rating of MEF>+2.46 could yield a $100 rebate.

To qualify, the purchase must be made during the program period and meet other eligibility requirements set forth by the American Recovery and Reinvestment Act (ARRA) and the State Energy Efficiency Appliance Rebate Program (SEEARP), which include:

Rebates are available to all Washington state consumers on a first come, first served basis until funds run out.

Rebates are not available retroactively for purchases made before the official start of the program.

Rebates are for the replacement of existing appliances in residential occupancies in Washington.

Rebates are limited to one refrigerator and one clothes washer per household.

Rebates are for appliances purchased from a store within Washington state.

To receive the state rebate for a refrigerator, proof must be provided that the replaced refrigerator was recycled, or at least decommissioned in accordance with state disposal laws.
Rebates cannot be paid to commercial or institutional organizations, Community Action agencies, new construction, or landlords.

Program updates and appropriate rebate application documents are online at (http://www.commerce.wa.gov/site/1226/default.aspx#c13).

To learn more about supplemental rebates from local utilities, consumers should contact their providers, or search the Database of State Incentives for Renewables & Efficiency at www.dsireusa.org (click on Washington state map). DSIRE, established in 1995 and funded by the U.S. Department of Energy, is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency.
In King County the current program overviews, incentive descriptions and contacts for residential sectors is the Green Building Grants Program.

TAX CREDITS
The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343).

A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. Consumers can itemize purchases on their federal income tax form, which will lower the total amount of tax they owe the government.

Among available tax breaks are:Home energy efficiency improvement tax credits for consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes. Such improvements must be "placed in service" between Jan. 1, 2009 through Dec. 31, 2020.

Residential renewable energy tax credits for consumers who install and place in service before Dec. 31, 2016 any of a variety of solar energy systems.

Automobile tax credits for individuals and businesses that buy or lease a new hybrid gas-electric car or truck and place it in service starting Jan. 1, 2006, and purchased on or before Dec. 31, 2010. See the IRS's "Summary of the Credit for Qualified Hybrid Vehicles" for information on the status of specific vehicle eligibility.

Plug-in electric vehicles. The Recovery Act modifies the credit for qualified plug-in electric drive vehicles purchased after Dec. 21, 2009. The credit ranges from $2,500 to $7,500, depending on the battery capacity. Refer to IRS Notices 2009-54: Qualified Plug-in Electric Vehicle Credit (PDF 29kb) and 2009-58: Qualified Plug-In Electric Vehicle Credit Under Section 30 for details.
Plug-in hybrid conversion kits. The Recovery Act also provides a tax credit of up to $4,000 for plug-in electric drive conversion kits. The credit generally applies to qualified vehicles placed in service after Feb. 17, 2009 and conversions made before Dec. 31, 2011. See the IRS website section on Alternative Motor Vehicle Credits for details.

Low speed and 2/3 wheeled vehicles. The Recovery Act creates a special tax credit for two types of plug-in vehicles: certain low-speed electric vehicles and 2- or 3-wheeled vehicles. IRS Notice 2009-58: Qualified Plug-In Electric Vehicle Credit Under Section 30 has more information.
Details are tax credits for energy-saving improvements and initiatives are summarized at http://www.energy.gov/taxbreaks.htm.