Get Ready For Appliance CLUNKERS Program, Or Stimulus Part Deux.
Ky., Ind. appliance rebate plans approved
By Jere Downs
Kentuckians and Hoosiers replacing their appliances with energy-efficient models next year will be able to claim hundreds of dollars in federal rebates under plans recently approved by the U.S. Department of Energy.
Part of the federal economic stimulus effort, states were left to tailor the appliance rebates to their own situations. Indiana, for example, chose to limit the rebates to home heating and air conditioning systems. Hoosiers will be able to get back $300 to $500 on purchases of those items made after Jan. 31.
In Kentucky and most other states, rebates will be available for more appliances. Kentucky’s biggest rebates — $300 to $400 — will be available for efficient gas furnaces and geothermal heat pumps. The state plans to start its program in March or April.
And while a few hundred dollars off on a geothermal heat pump that might cost $14,000 or more may not sound like much, consumers can double or even triple those savings by taking advantage of offers from utilities and energy efficiency tax credit programs.
In Kentucky, consumers can collect a state tax deduction of up to $250 per item for energy-efficient items such as water heaters, heat pumps and air conditioners — on top of the stimulus rebate. Another Kentucky tax deduction is allowed for purchases of up to $500 for solar water heating systems and up to $250 for geothermal heating systems.
Vectren, the Southern Indiana gas utility, offers a $200 rebate for new, efficient gas furnaces. In addition, the federal Energy Efficiency Tax Credit can lower income-tax bills by up to $1,500 for those who install qualifying residential water heaters, furnaces, heat pumps, air conditioners and more during this year and next.
“All of a sudden, you are getting into real money,” said Eric Burch, spokesman for the Indiana Office of Energy & Defense Development. “You are making it possible for people who could not pull the trigger on a new furnace can maybe pull it now.”
Getting rid of clunkers
Similar to the popular Cash for Clunkers auto trade-in program earlier this year, the appliance rebates are aimed at eliminating inefficient machines.
Consumers in Indiana and Kentucky will have to sign a form confirming the purchase is for replacement of an existing appliance, and that the old appliance will no longer be used. They won’t, however, be required to haul the old machine to the store, as was the case with the auto program.
“I cannot say we will have appliance police go out and check everybody,” Greg Guess, director of Conservation at the Ky. Department for Energy Development & Independence, said of the requirement that old appliances not stay in use. “I can say we will have some sort of self certification that the appliance being purchased will replace an old one.”Kentuckians will be responsible for recycling their old appliances, and solid waste coordinators in each county are coordinating how to collect them, Guess said. Of particular concern is that residents arrange for proper disposal of Freon and other coolants harmful to the atmosphere, from old refrigerators and air conditioning systems.
Exact details on how the Indiana and Kentucky programs will run remain sketchy, pending the programs’ formal launch. Still unclear, for example, is whether a Kentucky resident can purchase an appliance in Indiana and qualify for the rebate in either state. ...
By Jere Downs
Kentuckians and Hoosiers replacing their appliances with energy-efficient models next year will be able to claim hundreds of dollars in federal rebates under plans recently approved by the U.S. Department of Energy.
Part of the federal economic stimulus effort, states were left to tailor the appliance rebates to their own situations. Indiana, for example, chose to limit the rebates to home heating and air conditioning systems. Hoosiers will be able to get back $300 to $500 on purchases of those items made after Jan. 31.
In Kentucky and most other states, rebates will be available for more appliances. Kentucky’s biggest rebates — $300 to $400 — will be available for efficient gas furnaces and geothermal heat pumps. The state plans to start its program in March or April.
And while a few hundred dollars off on a geothermal heat pump that might cost $14,000 or more may not sound like much, consumers can double or even triple those savings by taking advantage of offers from utilities and energy efficiency tax credit programs.
In Kentucky, consumers can collect a state tax deduction of up to $250 per item for energy-efficient items such as water heaters, heat pumps and air conditioners — on top of the stimulus rebate. Another Kentucky tax deduction is allowed for purchases of up to $500 for solar water heating systems and up to $250 for geothermal heating systems.
Vectren, the Southern Indiana gas utility, offers a $200 rebate for new, efficient gas furnaces. In addition, the federal Energy Efficiency Tax Credit can lower income-tax bills by up to $1,500 for those who install qualifying residential water heaters, furnaces, heat pumps, air conditioners and more during this year and next.
“All of a sudden, you are getting into real money,” said Eric Burch, spokesman for the Indiana Office of Energy & Defense Development. “You are making it possible for people who could not pull the trigger on a new furnace can maybe pull it now.”
Getting rid of clunkers
Similar to the popular Cash for Clunkers auto trade-in program earlier this year, the appliance rebates are aimed at eliminating inefficient machines.
Consumers in Indiana and Kentucky will have to sign a form confirming the purchase is for replacement of an existing appliance, and that the old appliance will no longer be used. They won’t, however, be required to haul the old machine to the store, as was the case with the auto program.
“I cannot say we will have appliance police go out and check everybody,” Greg Guess, director of Conservation at the Ky. Department for Energy Development & Independence, said of the requirement that old appliances not stay in use. “I can say we will have some sort of self certification that the appliance being purchased will replace an old one.”Kentuckians will be responsible for recycling their old appliances, and solid waste coordinators in each county are coordinating how to collect them, Guess said. Of particular concern is that residents arrange for proper disposal of Freon and other coolants harmful to the atmosphere, from old refrigerators and air conditioning systems.
Exact details on how the Indiana and Kentucky programs will run remain sketchy, pending the programs’ formal launch. Still unclear, for example, is whether a Kentucky resident can purchase an appliance in Indiana and qualify for the rebate in either state. ...
Labels: Economic news
posted by KYJurisDoctor at 11:41 AM
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