Beginning in Fall 2009, United States citizens will see another type of economic stimulus incentive from the American Recovery and Reinvestment Act of 2009.
The economic stimulus plan provides for $296 million in federal government funds for state-run appliance cash rebate programs.
U.S. Cash for Appliances – Gov’t Rebates
Just as the popular United States Cash for Clunkers program was winding down, the U.S. Department of Energy (DOE) announced a new economic stimulus measure, the State Energy Efficient Appliance Rebate Program (dubbed “Cash for Appliances” or “Cash for Refrigerators” by the media).
The program will provide government rebate incentives for purchases of new energy efficient home appliances like refrigerators, dishwashers, and water heaters.
State Rebate Programs – Cash for Appliances with Energy Star® Labels
States are at liberty to craft unique program plans that must be approved by the Department of Energy. States will indicate which Energy Star® appliances qualify for their programs and the exact rebate amount for each home appliance. Final applications must be submitted to the Department of Energy for approval on or before October 15, 2009.
U.S. Government Rebates for Energy Efficient Home Appliances
As states craft plans for their respective Cash for Appliances programs, they must take into account certain program requirements. Here are three important considerations noted in the Department of Energy’s funding opportunity announcement:
- Deadline to spend appliance rebate funds: February 17, 2012. This is exactly three years after the enactment of the American Recovery and Reinvestment Act of 2009.
- Funds will be allocated in two steps. Ten percent will be awarded after initial application, and the remainder will be allocated after the final application is approved.
- States may cover 50% of program administration costs with DOE allocations. States must cover the other half of administering appliance rebate programs.
Will State Cash for Appliances Programs Have Same Effect as Federal Cash for Clunkers?
Hopefully, the appliance industry will get a boost like the auto industry experienced with Cash for Clunkers. Potential program benefits include the following:
- Inventory might move if customers flock to stores.
- Employees at appliance manufacturers may have more work.
- Energy Star® appliance retailers’ and manufacturers’ stock prices might go up.
According to a Department of Energy press release on July 14th, this appliance rebate program should spur economic growth, create jobs, save energy, and reduce greenhouse gas emissions.
2009 Government Stimulus Incentives
Cash for Appliances isn’t the only government stimulus program to roll out in 2009. Read about other 2009 United States government rebate and tax incentive programs in the following articles:
2009 Stimulus Checks, Tax Rebates
New Car Tax Rebate – Obama Economic Stimulus Plan
United States Cash for Clunkers Program Details
Resources:
American Recovery and Reinvestment Act of 2009
FY 2009 EE Rebates Stimulus State Calculations retrieved from energy.gov on August 24, 2009.
Latest in Stimulus: ‘Cash for Refrigerators’ by Matthew Boyle retrieved from BusinessWeek.com on August 24, 2009.
Secretary Chu Announces Nearly $300 Million Rebate Program to Encourage Purchases of Energy Efficient Appliances retrieved from energy.gov on August 24, 2009.
State Energy Efficient Appliance Rebate Program Funding Opportunity Announcement retrieved from energy.gov on August 25, 2009.
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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