Cash for Clunker appliances - Texas style

[REWahoo]

For those of you living in Texas hoping to get some of that stimulus money to help pay for a new fridge, here's the scoop:

SECO Stimulus | Texas Energy Efficient Appliance Rebate Program

It seems crazy that the purchase window will be for 10 days only, but at least you can "reserve" a rebate in advance. Note there is a limit of two rebates per household (four counting the recycling rebates).

We need a new chest freezer, and $255 will go a long way towards buying one.

 

[ziggy29]

From the link:

Consumers will have an opportunity to reserve an appliance rebate by calling a toll-free number or registering online approximately two weeks prior to April 16, 2010. After the reserved mail-in rebates are awarded, any remaining funds will be rebated to consumers on a first-come, first-served basis. Shoppers will be limited to two appliance rebates and two recycling rebates per household.

I wonder if this will run out of money just as quickly as the original Cash For Clunkers did -- the one that was supposed to run for months but ran out of funding in days?

Never underestimate the public's desire for free money.

 

[REWahoo]

You are no doubt correct, the funds will go fast. I think around April first I'll start checking the website first thing each morning. I want in the front of the line for some of that "free" money.

And whaddya bet the web site crashes due to the volume?

 

[Bikerdude]

Are all "Energy Star" appliances eligible or is there a list. I'm waiting for CT to get their act together as I need all new appliances. It's probably a good idea to monitor prices before the rebate begins to see if they go up.

 

[REWahoo]

Are all "Energy Star" appliances eligible or is there a list.

At this point, all we know is this:

The U.S. Department of Energy approved the rebates for consumers who buy eligible Energy Star appliances...

The term "eligible" leaves some wiggle room.

It's probably a good idea to monitor prices before the rebate begins to see if they go up.

Yep. But I'm hopeful the manufacturers and retailers will be licking their chops at a chance to sell this stuff and try to lure potential buyers with reasonably good deals.

 

[bbbamI]

Thanks for posting this REW...I'll keep my eyeballs on it.

Now, if they could only gimmee some money for replacing my tv...

 

[ziggy29]

Yep. But I'm hopeful the manufacturers and retailers will be licking their chops at a chance to sell this stuff and try to lure potential buyers with reasonably good deals.

That may well be true -- a lot of Texas retailers have sales during the tax-free weekend for clothing. If they didn't, the weekend would just be an 8% off sale...

 

[Moemg]

I tried to wait for it but my refrigerator was leaking and the fear of a breakdown sent me to Sears . I got a good deal on an energy Star refrigerator and they gave me an extra $100 off that was called cash for clunkers .Where is the rebate for dryers ? That is what I need next .

 

[crazy connie]

I tried to wait for it but my refrigerator was leaking and the fear of a breakdown sent me to Sears . I got a good deal on an energy Star refrigerator and they gave me an extra $100 off that was called cash for clunkers .Where is the rebate for dryers ? That is what I need next .

Dryer rebate? Clothesline

 

[Moemg]

Dryer rebate? Clothesline

Thanks Connie but in Florida especially waterfront my clothes would never dry !

 

[ikonomore]

Are all "Energy Star" appliances eligible or is there a list. I'm waiting for CT to get their act together as I need all new appliances. It's probably a good idea to monitor prices before the rebate begins to see if they go up.

I was waiting too in CT. I just checked this site and I am going to buy when I want. $50 for a fridge or washing machine and it says the appliance must be replaced.

OPM: SEEARP

 

[mickeyd]

My 15 YO water heater may be a candidate for this. Too bad I upgraded my AC a year ago...

 

[Bikerdude]

I was waiting too in CT. I just checked this site and I am going to buy when I want. $50 for a fridge or washing machine and it says the appliance must be replaced.

OPM: SEEARP

Typical CT. Most likely half the money is going to someone's cousin to administer the program.

 

[ERD50]

My 15 YO water heater may be a candidate for this. Too bad I upgraded my AC a year ago...

Just make sure you do the math. I'm looking at replacing my water heater with one of the cheapest models they make (but with the features that help give long life, like glass-lined tank). Yep, it's less efficient, but the extra cost for higher eff doesn't seem to have a reasonable payback. 2" versus 1" insulation costs more, but makes a small difference in annual costs.

-ERD50

 

[Telly]

REW, thanks for the heads-up. It was in the press for a while, then just dropped off without hearing any State of Texas details.

Refrig for sure, maybe the water heater too, need to check when I installed it vs. age warranty. I tend to replace water heaters before they start to leak.

 

[REWahoo]

Update

The "Texas Trade Up Rebate Program" has been finalized: Appliance Rebate Flyer

Lucky me, the rebate reservation window opens Monday, April 5 - the week we're on a cruise. No doubt the money will all be spoken for by the time we get back.

 

[tinlizzy]

I'm in Iowa and our $2.7 million appliance rebate program started March 1st.

The money was gone in 5 hours!

 

[Htown Harry]

Has anyone done the research to know if there is a prohibition against getting both a state rebate and an IRS home energy efficiency tax credit, assuming the model is eligible? Some types of HVAC units and water heaters appear to be eligible under both programs.

$800 tankless water heater - $300 purchase rebate - $75 recycling rebate - $240 (30%) tax credit = too good to be true?

This EPA site says "there are two separate pots of money you can tap into":

What tax credits and rebates are currently available?

But the instructions for the 2009 Form 5695 have this language:

If you received a subsidy from a public utility for the purchase or installation of an energy conservation product and that subsidy was not included in your gross income, you must reduce your cost for the product by the amount of that subsidy before you compute your credit. This rule also applies if a third party (such as a contractor) receives the subsidy on your behalf.​

 

[JPatrick]

I did a cash for clunkers deal in August...If I took anymore guvmint money I'm sure I would never get another good nights sleep..

 

[REWahoo]

Has anyone done the research to know if there is a prohibition against getting both a state rebate and an IRS home energy efficiency tax credit, assuming the model is eligible? Some types of HVAC units and water heaters appear to be eligible under both programs.

Harry, good question. I'm working to get a new heat pump A/C system for my widowed SIL and understood she could double dip based on this FAQ from the Texas program:

17. Can the appliance rebate for heat pumps be used in conjunction with the federal tax credit that currently exists for the purchase of this type of appliance?

• To qualify for a Federal tax credit, a heat pump must meet the energy efficiency criteria listed on the Federal Tax Credits for Consumer Energy Efficiency page on ENERGY STAR's website. If the appliance meets both the Texas criteria and the Federal tax credit criteria, it could be eligible for both. For Texas heat pump rebate information, see our energy efficiency criteria for heat pumps.

I had not seen the IRS language on from 5695, but you will note it applies only to subsidies from public utilities, not the state or federal govt.

I think the biggest challenge in taking advantage of these programs will be 1) actually getting a rebate reservation before the $ is gone and 2) getting the appliance/system installed and the paperwork completed by the deadline. Rules say you have only 60 days from the date of reservation to submit all the forms to the state.

And whaddya bet the demand for qualifying appliances and systems for these programs all around the US is depleting retailer's inventories making it difficult to meet the deadlines.

 

[tinlizzy]

Harry - a friend of mine is doing this in Iowa. Tax credit and rebates for furnace and AC. He said that along with the rebate info came the instructions that he will have to claim the rebate money as income on 2010 taxes. He will also get rebates from the local utility and the mfg (York).

 

[Htown Harry]

...along with the rebate info came the instructions that he will have to claim the rebate money as income on 2010 taxes.

Interesting. I guess I will just have to wait and see if the rebate issuer follows up with a 1099 form next January.

Of course, the double-dip a good deal even if the net rebate is going to be somewhat reduced by the taxable status. Last time I checked, it wasn't good practice to turn down money-for-nuthin' just because there was a little tax withholding off the top.

 

[Htown Harry]

And whaddya bet the demand for qualifying appliances and systems for these programs all around the US is depleting retailer's inventories making it difficult to meet the deadlines.

Not yet, at least according to this article:

Consumer Reports Home & Garden Blog: Report: Cash for clunkers not boosting appliance sales—yet

 

[tinlizzy]

I was a little off in my response. I talked to him last night and he said they want him to subtract the rebate amounts from the price of the furnace when using it for the tax credit. Makes more sense.

Good luck, you might need speed dial . Every state is so different though. Our money went at lightning speed but Wisconsin had money available for 9 months before it ran out.

 

[REWahoo]

Good luck, you might need speed dial . Every state is so different though. Our money went at lightning speed but Wisconsin had money available for 9 months before it ran out.

Could be the money lasts much longer here as well - there has been a surprising lack of publicity regarding the rebate program. Even though it kicks off in three weeks I have seen absolutely no mention of the program since the initial announcement late last year.

The heating and A/C company my SIL contacted to get estimates earlier this week hadn't heard of it either and thought she was talking about the "Energy Star" federal tax credit. I ended up calling their office, explaining the program to them and giving them links to the program on the state website to convince them the program was real.

Once they understood my SIL could end up getting ~$3,000 in rebates and tax credits for a system they had just priced at $5,400, I think I detected a bit of "Damn! We should have priced the system a lot higher!" in his voice.