Buyers Be Ware: Cash for Clunker Appliances Program

GREENandSAVE Community
Posted on Thursday 27th August 2009

Buyers Be Ware: Not All ENERGY STAR Appliances Are Eligible for the Cash for Clunker Appliances Program

With the cash for clunkers program over, Americans are now shifting their focus on capitalizing on the new cash for clunkers appliance program. This $300 million rebate program under the Recovery Act is designed to encourage consumers to buy new ENERGY STAR-rated home appliances.

Heating and cooling appliances and water heaters are the main categories the Department of Energy wants to promote for the greatest energy savings potential. The program is designed to facilitate economic growth, creating jobs, saving energy and reducing greenhouse gas emissions. DOE notes that states and territories can use these funds to leverage utility companies and energy efficiency program sponsors in their area.

Appliances covered under the program include:

  • central air conditioners
  • heat pumps (air source and geothermal)
  • boilers
  • furnaces (oil and gas)
  • room air conditioners
  • clothes washers
  • dishwashers
  • freezers
  • refrigerators
  • water heaters

While this program will certainly help improve the energy efficiency of hundreds of thousands of homes, buyers should be ware that not all ENERGY STAR appliances are eligible for the program. As just one example, homeowners should know that not all ENERGY STAR gas storage and gas condensing water heaters will qualify for the tax credit. However all ENERGY STAR gas tankless models will qualify. To ensure that you are purchasing the right appliance refer to this handy Federal Tax Incentive Decoder. This decoder not only covers the cash for clunker appliances program but also every aspect of the American Recovery and Reinvestment Act.

test image for this block